Oh, hello there! After its wild dance to the top and a rather dramatic stumble at the all-time high, Ethereum (ETH) has decided to take a breather. 🛌 It’s like when you finally get to the front of the queue for the best ride at the fair, only to realize it’s closed for maintenance. Talk about a mood swing! But let’s dive into the nitty-gritty, shall we?
ETH Price Technical Analysis
By Shayan
The Daily Chart
On the daily chart, dear reader, Ethereum has taken a step back after its parabolic ascent hit a wall at the $4.8K ATH. 💪 The price found a comfy spot around the 0.5 Fibonacci retracement ($4,070), which coincides with the ascending channel’s midline and previous demand levels. It’s like finding a cozy corner in a bustling café-comfortable, but not exactly the best view.
If this support starts to wobble, the next major comfort zone is between the 0.618-0.786 Fibonacci retracement range ($3,900-$3,660). This area might become a gathering place for bears if they decide to throw a party. 🎉
Meanwhile, the RSI has cooled off to a neutral 57, suggesting that the overbought conditions have been reset, but the market hasn’t decided if it’s going to the beach or the mountains for its next adventure. Holding above $4,070 would keep the bulls hopeful, while a decisive drop below this level could send ETH tumbling toward the $3,600-$3,800 range. 🌊
The 4-Hour Chart
On the 4-hour timeframe, ETH bounced back from the $4.2K support, which lines up nicely with the ascending trendline. This intersection makes the $4.2K zone a critical battleground for buyers. 🛡️
The price has been consolidating in a short-term range between $4,200 and $4,400, forming what looks suspiciously like an inverted head and shoulders pattern. It’s like the market is playing a game of tug-of-war: buyers are holding their ground, but they’re struggling to break through resistance.
A confirmed breakout above $4.4K would complete the inverted H&S formation, paving the way for another attempt at the ATH. On the flip side, if the $4.2K support and trendline give way, ETH could face deeper retracements, possibly targeting the 0.702-0.786 Fibonacci zone. 📉
Onchain Analysis
By Shayan
Ethereum continues to swing wildly after its rejection from the all-time high, with the liquidation heatmap showing where leveraged positions are clustered. These zones often act as magnets for price, as liquidity hunts dominate short-term movements. It’s like a game of musical chairs, but with a lot more at stake.
During the rally into the $4,800-$4,900 range, ETH triggered a series of short liquidations before reversing sharply. This trap left late buyers stranded at the top while creating a liquidity vacuum to the downside. 🚀
After the rejection, ETH dropped to the $4,100-$4,200 range, hitting a dense cluster of long liquidations and fueling the aggressive sell-off seen in mid-August. It was like a domino effect, but with more drama and fewer dominos.
Currently, the heatmap highlights two critical liquidity zones:
- $4,500-$4,700: A dense cluster of short liquidations that could pull prices higher if buyers regain control. 📈
- $3,800-$3,900: A heavy concentration of long liquidations, still untested, which could act as a downside magnet if current support fails. 📉
With ETH trading in a range between $4,200 and $4,500, the market remains bound by liquidity. Until a decisive breakout occurs, price is likely to continue bouncing between these clusters, with volatility driven by liquidation cascades on both sides. It’s a rollercoaster, but hey, at least it’s never boring! 🎢
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2025-08-22 16:27