Ethereum's price is losing upward strength after being unable to break through the $4,500 level.

Ethereum's Price Action

Ethereum's bullish trend is showing signs of exhaustion, retracing from the $4,400 resistance. While a mid-term uptrend persists, short-term momentum has weakened due to a bearish divergence and market structure shift. The immediate future will be crucial in determining if this is a correction or a deeper pullback.

Technical Indicators

On the daily chart, ETH is within an ascending channel but hasn't breached the $4,800 resistance. The RSI has decreased to 49, indicating fading bullish momentum. Support is found around $4,000, with a potential move to $3,400 if that level is lost.

Short-Term Outlook

The 4-hour view confirms a market structure shift following a failure to maintain higher highs. A bearish divergence on the RSI reinforces this downward movement, placing ETH in a short-term corrective phase. To regain control, ETH must surpass $4,500, invalidating the recent lower-high formation.

Derivatives Market

Open interest remains high at $28.5 billion, reflecting significant speculative interest. This elevated level indicates vulnerability to potential liquidations if volatility increases. A decrease in open interest could signal a healthy reduction in leverage, potentially paving the way for future upward movement.