Ethereum (ETH) has shown remarkable resilience in its recent price action, holding previous resistance levels as new support and demonstrating a strong move back into its established trading range. According to Skew Δ, a prominent crypto analyst, the daily chart for ETH reveals a clean RSI divergence, signaling potential bullish momentum. This development comes as ETH struggles to break above the $4.5K mark, which has proven to be a significant challenge for bulls. Traders are closely monitoring these levels, as they could dictate the next major move in the cryptocurrency market, especially with ongoing volatility in broader financial sectors.

Analyzing ETH's Daily Chart and Key Support Levels

On the 1D timeframe, ETH's ability to hold previous resistance as support is a positive indicator for short-term traders. This price behavior, combined with the RSI divergence, suggests that selling pressure may be waning, potentially setting the stage for upward momentum. Skew Δ highlights that while ETH has re-entered its range, surpassing $4.5K remains elusive, with multiple attempts failing to sustain gains above this threshold. For those eyeing trading opportunities, this could represent a classic range-bound scenario where buying dips near support and selling at resistance might yield profits. Market sentiment appears cautiously optimistic, influenced by institutional interest in ETH-based products, which could drive further demand if macroeconomic conditions improve.

Weekly Outlook and Pullback Scenarios for ETH

Shifting to the weekly chart, Skew Δ emphasizes the need for considerable strength and demand during any pullback into the grey box area, ranging from $4.1K to $3.8K. This zone is critical, as it could act as a launchpad for a renewed push higher if buyers step in aggressively. Traders should watch for increased trading volumes and on-chain metrics, such as rising active addresses or ETH transfers to exchanges, to confirm demand. In the absence of real-time disruptions, this pullback level offers a strategic entry point for long positions, provided that global market correlations, like movements in Bitcoin (BTC), remain supportive. Historical data from similar patterns shows that ETH often rebounds strongly from such zones, potentially targeting $5K or beyond if resistance breaks.

From a broader trading perspective, ETH's performance ties into overall crypto market dynamics, including correlations with stock indices. For instance, if tech-heavy stocks rally, ETH could benefit from spillover effects, enhancing trading volumes across pairs like ETH/USD and ETH/BTC. Institutional flows, particularly through ETFs, have been a key driver, with recent reports indicating steady inflows that bolster long-term sentiment. Traders are advised to monitor support at $3.8K closely, as a breach could lead to further downside, while holding above $4.1K might invalidate bearish theses. Incorporating technical indicators like moving averages and volume profiles can help identify optimal entry and exit points, making this an opportune moment for data-driven strategies in the volatile crypto landscape.

In summary, ETH's current setup presents intriguing trading opportunities, with a focus on range trading and pullback buys. By prioritizing verified technical signals and market correlations, investors can navigate these levels effectively, aiming for gains amid evolving sentiment. Whether you're a day trader or long-term holder, staying attuned to these price zones and demand indicators will be crucial for capitalizing on ETH's next move.