Decoding Ethereum’s $4,400 test – Are THESE divergences a rally signal or a sell trap?
The post Decoding Ethereum’s $4,400 test – Are THESE divergences a rally signal or a sell trap? appeared on BitcoinEthereumNews.com. Key Takeaways Ethereum is facing its $4,400-resistance with bullish on-chain signals, overheated leverage, and liquidity clusters ready to spark big moves. Ethereum [ETH] extended its rally from the $2,400-range to test the crucial $4,400-resistance on the charts. In fact, this is a level that has triggered reversals in the past for ETH. Valued at $4,206 at press time, it can be argued that the market is at a decisive inflection point. Importantly though, long-term on-chain signals have been leaning bullish lately. For example – The all-exchange Exchange Supply Ratio (ESR) has been steadily falling since 2022, reflecting reduced sell-side liquidity and stronger accumulation trends. On the contrary, Binance-specific data painted a shorter-term warning. Its ESR has been climbing since early 2025, coupled with notable inflows – Conditions often tied to selling readiness. Such a divergence between macro strength and tactical caution might hint at potential volatility ahead. Is Ethereum’s chart hinting at a breakout or an exhaustion point? At the time of writing, the daily chart revealed that Ethereum was testing the $4,400 barrier, while maintaining support near $4,000. The Relative Strength Index hovered around 71 – A sign that the market may be entering overbought territory. In fact, the Fibonacci extensions outlined $4,302 as the immediate upside and $4,886 as the next target if momentum holds. And yet, elevated RSI readings meant profit-taking could be a real possibility. Hence, traders might need to be watchful for a few signs of exhaustion. Source: TradingView Are Futures traders pushing leverage to dangerous extremes? Futures volume data flagged “overheating” as leveraged positions piled up in recent sessions. Now, while leverage can accelerate bullish moves, it can just as easily fuel sharp liquidations if sentiment flips itself. Historically, overheated derivatives markets have triggered quick retracements, especially near heavy resistance levels. Hence, the question is…

The post Decoding Ethereum’s $4,400 test – Are THESE divergences a rally signal or a sell trap? appeared on BitcoinEthereumNews.com.
Key Takeaways Ethereum is facing its $4,400-resistance with bullish on-chain signals, overheated leverage, and liquidity clusters ready to spark big moves. Ethereum [ETH] extended its rally from the $2,400-range to test the crucial $4,400-resistance on the charts. In fact, this is a level that has triggered reversals in the past for ETH. Valued at $4,206 at press time, it can be argued that the market is at a decisive inflection point. Importantly though, long-term on-chain signals have been leaning bullish lately. For example – The all-exchange Exchange Supply Ratio (ESR) has been steadily falling since 2022, reflecting reduced sell-side liquidity and stronger accumulation trends. On the contrary, Binance-specific data painted a shorter-term warning. Its ESR has been climbing since early 2025, coupled with notable inflows – Conditions often tied to selling readiness. Such a divergence between macro strength and tactical caution might hint at potential volatility ahead. Is Ethereum’s chart hinting at a breakout or an exhaustion point? At the time of writing, the daily chart revealed that Ethereum was testing the $4,400 barrier, while maintaining support near $4,000. The Relative Strength Index hovered around 71 – A sign that the market may be entering overbought territory. In fact, the Fibonacci extensions outlined $4,302 as the immediate upside and $4,886 as the next target if momentum holds. And yet, elevated RSI readings meant profit-taking could be a real possibility. Hence, traders might need to be watchful for a few signs of exhaustion. Source: TradingView Are Futures traders pushing leverage to dangerous extremes? Futures volume data flagged “overheating” as leveraged positions piled up in recent sessions. Now, while leverage can accelerate bullish moves, it can just as easily fuel sharp liquidations if sentiment flips itself. Historically, overheated derivatives markets have triggered quick retracements, especially near heavy resistance levels. Hence, the question is…
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