Key Takeaways:ETH failed to break $4,800, slipping to around $4,450 after a 3% correction triggered by a short-term bearish divergence.Spot selling intensified, while leveraged traders maintained open positions — signaling volatility ahead.$4,400 acts as key support; holding above it could reset bullish momentum toward $4,950–$5,050.Liquidity trends remain bullish, with exchange reserves down 25% since 2022, tightening available ETH supply.Ethereum Hits Resistance at $4,800 as Bulls Pause for BreathEthereum’s rally stalled at the $4,800 resistance zone, setting up a key inflection point for bulls after an otherwise strong week led by Bitcoin’s new all-time high near $121,675. Ether (ETH) slipped roughly 3% to $4,452, forming a bearish divergence on the four-hour chart — a technical signal often preceding short-term corrections.The pullback comes after multiple failed attempts to break above the $4,700–$4,800 range, now regarded as a high-liquidity “battle zone” between spot profit-takers and leveraged longs.Spot Selling Pressure Grows as Leveraged Traders Stay ActiveOn-chain and derivatives data show a mixed market structure.Spot cumulative volume delta (CVD) has dropped sharply, confirming rising selling pressure among short-term holders.Futures open interest and futures CVD, however, remain elevated, suggesting that leveraged traders are still positioning aggressively for volatility rather than retreating.Such divergences often create ideal setups for liquidity-driven entries, where price sweeps stop-loss levels (notably near $4,400) before rebounding toward resistance. A clean defense of this area could confirm renewed bullish momentum later this week.Key Levels to Watch: $4,400 Support and $4,800 ResistanceEther now trades in a compressed range between $4,400 and $4,800.A bounce from $4,400 would signal that bulls continue to absorb sell pressure, potentially reigniting a push toward $4,950–$5,050 — the next measured resistance band.Failure to hold $4,400 could open the door to a deeper correction toward $4,250–$4,100, where multiple order blocks and demand zones overlap on the 4-hour and daily charts.According to crypto trader Skew, this marks the “fourth tap” of the upper resistance zone. Sustained consolidation here, rather than sharp rejection, could be “pretty bullish” for the next leg higher.Ether’s “Liquidity Lag” Could Be ClosingMacro liquidity remains a core narrative driver. U.S. M2 money supply recently reached $22.2 trillion, a record high. While Bitcoin has surged over 130% since 2022 in response, Ether is only up about 15%, showing what analysts call a “liquidity lag.”That gap may soon narrow.ETH exchange reserves across major platforms have fallen to roughly 16.1 million ETH, down more than 25% since 2022.Net exchange flows remain negative, indicating consistent outflows toward staking and self-custody, reducing sell-side supply pressure.This tightening liquidity backdrop could magnify price reactions to any renewed inflows — whether from institutional accumulation or ETF demand.Short-Term Outlook: Cooling Phase Before the Next LegDespite near-term weakness, ETH’s broader market structure remains bullish. The pullback appears to be a momentum reset rather than a trend reversal. As long as $4,400 holds, the setup favors accumulation rather than capitulation.A successful reclaim of the $4,700–$4,800 range could trigger the next leg higher, potentially testing psychological resistance near $5,000 and extending toward new highs if broader risk sentiment holds firm.Ethereum’s pause at $4,800 reflects a healthy cooldown in an otherwise strong uptrend. With supply thinning and liquidity conditions improving, the next few sessions could determine whether Ether’s rally resumes toward uncharted territory — or whether bulls need a deeper reset before the next move, according to Cointelegraph.
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