Well, it finally happened. After what felt like an eternity of just… going nowhere, Ethereum has made its move. And it was a big one. The price shot up, breaking out of that tight range it was stuck in for weeks. Now, though, it’s hit a wall. A pretty important one. Where it goes from here is anyone’s guess, really. It could be the start of a bigger run, or we might just slide back into another period of waiting.
A Clear Crossroads on the Charts
Looking at the daily chart, the picture is pretty clear. This recent surge has pushed the price right up into a key resistance area, somewhere between $4,700 and $4,800. That’s a zone that’s caused problems before. It’s a classic supply zone where sellers have historically stepped in.
If it can actually close a day above that—I mean, really break through and hold—then a run at $5,000 starts to look a lot more likely. But if it gets rejected here? I think we’d probably see things cool off pretty quickly. A drop back toward the $4,200 to $4,400 area wouldn’t be a huge surprise. That’s where you’d expect buyers to show up again, if they’re still interested.
The Short-Term Squeeze
Zooming in on a shorter time frame, you can see how we got here. The price broke out of a wedge pattern and just took off. The move was pretty impulsive. But now it’s stalling, right at that resistance. It’s a classic standoff.
The momentum behind this push seems to have come from a short squeeze. A bunch of leveraged short positions got caught when the price started moving up, and their forced buying just fueled the rally even more. It flushed out the sellers and created a vacuum that pulled the price higher. It was a clean move.
What Comes Next?
But that kind of move leaves a mark. All that action created a pocket of liquidity down around the $4,400 to $4,500 level. It’s like a gravitational pull. If the price can’t push through this current ceiling, it might just get drawn back down to that zone to test things out. To see if the demand is really there.
So the breakout happened, just like some thought it might. The short squeeze provided the spark. But the real question is about sustainability. Can buyers hold these levels, or are we just setting up for a retrace? The next few days should tell us a lot. Either we consolidate here for a shot at new highs, or we pull back to gather more energy. It’s a waiting game again, but at a much more interesting price.
