Short-term correction may follow as ETH approaches key liquidity zone
Ethereum (ETH) has staged a strong rally in recent weeks, breaking above the $4,700 resistance for the first time since early summer. However, technical indicators now suggest that a short-term retracement could be developing as the asset tests a zone of liquidity and profit-taking pressure near its previous weak high around the $4,800–$4,900 range.
The 4-hour ETH/USD chart shows a decisive close above the gray resistance block, confirming a breakout from its previous consolidation range. Yet, price has begun to stall beneath the upper liquidity zone marked by a thin red line — an area where sellers have historically regained control.
“Ethereum has reached a significant pivot point,” noted one of BITX market strategist. “A retrace toward the $4,500–$4,400 demand zone would be technically healthy before any sustained push above $4,800.”
Three major demand areas are visible on the chart — near $4,400, $4,150, and $3,850. These zones acted as strong accumulation levels during previous sell-offs, suggesting that dip buyers may re-enter if price corrects from current levels.
Volume analysis indicates diminishing momentum on the recent breakout, aligning with the possibility of a short-term cooldown before resuming the broader uptrend.
“The structure remains bullish as long as ETH stays above $4,200,” According to BITX analysts. “Retraces like this are part of a normal trend cycle — they often provide a new base for the next expansion leg.”
Despite the potential retrace, Ethereum’s macro outlook remains constructive. Institutional inflows, on-chain activity, and liquid staking participation continue to strengthen network fundamentals. With global treasury demand for ETH expanding — particularly from Asian retail capital — analysts see long-term price support remaining intact.
As Ethereum consolidates above $4,700, traders are closely watching whether this pullback becomes a launchpad for a fresh rally or signals a temporary market cooldown.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.