The post Ethereum Price Prediction Today: Bullish And Bearish Scenarios Explained appeared first on Coinpedia Fintech News
Ethereum has recently broken through a major resistance zone between $3,900 and $4,100, closing a three-day candle above this level. This move is considered bullish in the larger trend, supporting continued upside. However, one analyst has warned that the market may see a short-term pullback before further gains.
Support Zones To Watch
The $3,900 to $4,100 range is now the critical support area to watch. If Ethereum holds above this zone, the breakout is likely to remain valid. But if the price falls back below $3,900 on a closing basis, the breakout could be invalidated, trapping buyers who entered at higher prices.
Warning Signs from Bitcoin Dominance
Bitcoin dominance, which measures the percentage of the crypto market made up by Bitcoin, is holding at around 60.5 percent support. If dominance bounces higher, it could put pressure on altcoins, including Ethereum. Technical signals also hint at a possible bullish divergence in Bitcoin dominance, which could mean short-term weakness for altcoins.
Bearish Divergences in Ethereum Charts
On Ethereum’s daily chart, a bearish divergence may be forming where price makes higher highs but the RSI (Relative Strength Index) makes lower highs. Similar patterns in the past have led to small pullbacks lasting several days.
A bearish divergence is also appearing on the ETH/BTC chart, suggesting Ethereum could underperform Bitcoin in the coming week. If Bitcoin struggles at its current resistance, Ethereum could see an even sharper dip.
Short-Term Outlook
If a bearish divergence is confirmed, a short-term pullback could bring Ethereum back to retest its new support around $3,900 to $4,100. While this would be a setback in the short term, it could also strengthen the larger bullish structure if support holds.