Eseandre Mordi
⬤ Ethereum is struggling at a key resistance zone that's repeatedly blocked price advances in recent months. The daily chart shows several warning signs, including a fresh rejection from this supply area where sellers keep stepping in. This latest pullback highlights just how tough it is for ETH to push through and maintain any upward momentum.
⬤ Each time ETH tests this resistance band, sellers quickly take control and drive the price back down. What makes this particularly concerning is the bearish divergence forming on the Stochastic oscillator—price is making higher highs while momentum is heading lower. "The divergence on the Stochastic indicator suggests the recent rally may be losing traction," which typically means buying pressure is fading and a reversal could be coming.
⬤ After bouncing back from November's lows, Ethereum climbed right back into the same overhead zone that triggered previous selloffs. The rejection confirms that sellers are still active at this level, blocking ETH from breaking higher. Combined with the momentum divergence, these signals paint a cautious picture for the near term.
⬤ How Ethereum behaves around this resistance will likely shape market sentiment going forward. If it keeps getting rejected here, we could see more volatility and a weaker rebound than bulls are hoping for. With both price action and momentum flashing bearish warnings, ETH's next move at this critical level will be worth watching closely.
Eseandre Mordi
