Key Support level: $4,354

Key Resistance level: $5,075

The momentum behind ETH has pushed prices up and higher. The expectation to see ETH at $5,000 is on everyone’s mind, and this price level is less than 5% from the current all-time high. This price level should be easy to achieve for ETH, given the current price action.

However, there are a few warning signs that the bears may prepare a trap for the bulls as they push the price to the current resistance at $5,075.

The bearish divergence forming on MACD and RSI seems to indicate that once ETH hits $5,000, the bears can jump in and pull it down in a more significant correction that can retest the current support at $4,354.

ETH Price Technical Indicators

Trading volume : This is the sustained volume that has been rising. The volume is however making lower highs as the price moves higher. This is a bearish sign.

RSI: The RSI continues to remain just under the 70 points level on the daily timeframe despite several attempts to break above. The bulls must rise. The RSI has been making lower highs than usual. This is a bearish divergence in comparison to the price.

MACD : Although the MACD histogram for the daily timeframe is bullish the lower highs of this histogram are in line with the volume and RSI. As the price rises, this is not encouraging confidence.

Bias

The bias towards Ethereum is bullish. But, it is important to be cautious as a sharp rejection of the resistance level could make ETH bearish in short term. Bulls must bring more conviction to the market. Otherwise, bears will capitalize on any weakness.

Short-Term Price Prediction for ETH

ETH is on a clear path to test the $5,000 level. A failure to sustain the price above this key level by the bulls will empower the bears to take over control and push ETH lower towards the support at $4,353. This could be seen as an indication that the bulls may fail to sustain the price above this key level.