- Ethereum faces resistance near $4,900, forming a potential double top, with Wave 4 retracements likely between $3,880 and $3,500 levels.
- Subwave 3 targets align with larger Wave 5, signaling possible pullbacks, while support near $3,200 could set stage for renewed upward movement.
- Ethereum’s relative weakness may drive capital rotation into altcoins, indicating early activity across the broader cryptocurrency market while maintaining overall trading momentum.
Ethereum (ETH) is struggling at resistance around 4900, a potential stall before it can continue gaining. The technical trends in the recent past show that before a second spurt upward can be realized, it is possible that a reversal may first occur.
Double Top Formation Around $4,900
Ethereum recently hit a slight new high, but CasiTrades noted the RSI peaked bearishly during subwave 3 within a larger wave 5. This alignment near the 0.618 extension signals a cautious outlook.
Wave 4 seems to be underway. A shallow pullback may bring ETH down to $3,880, aligning with the 0.382 retracement. Another moderate drop could reach $3,500.
In deeper corrections, Ethereum could touch $3,200 at the 0.618 retracement. Holding above shallower levels could still allow a push toward $5,600–$6,000. Testing $3,200 would reduce the chance of exceeding $4,900 immediately.
Ethereum Weakness and Altcoin Rotation
CasiTrades highlighted that ETH is weaker than many other altcoins currently observed. This underperformance may point to capital moving into smaller coins. Early signs of altcoin season could appear if this rotation continues.
Ethereum’s struggles could boost investor interest in other digital assets. Traders often watch ETH as a barometer for market rotation into altcoins.
Historically, when ETH stalls near resistance, altcoins tend to gain momentum. This pattern could suggest rising activity in the broader altcoin market soon.
Price Action and Technical Levels
Ethereum’s price as of this writing was at $4,351.99, showing a 2.58% drop in 24 hours and 9.43% over the past week. Trading volume is strong at $37.2 billion, signaling active market participation despite recent declines.
Technical analysis shows subwave 3 targets aligning with larger wave 5 levels. Light retracements can precondition a new rally. Important support levels are: 3,880, 3,500 and 3,200.
Provided that Ethereum manages to be above the shallower retracements, the exchange can proceed to target the level of $5,600-$6,000.Falling toward $3,200 could limit upward potential and keep ETH near the $4,900 resistance zone.
