On-chain data indicates Ethereum’s native token Ether (ETH) could be poised for a rally toward $4,500, supported by strong market momentum and historical price patterns. The cryptocurrency has persistently traded below the $4,000 resistance level, which remains a critical threshold for bullish advancement. Market analysts identify $4,500 as the next major target for buyers, based on technical formations and liquidation trigger points.
A bearish divergence in the Relative Strength Index (RSI) signals weakening buying pressure, suggesting potential short-term downside if ETH fails to decisively breach $4,000. Such a scenario could prompt a correction toward immediate support below $3,700, with more significant downside risk in the $3,200-$3,300 range.
Should ETH achieve a sustained breakout above $4,000, approximately $930 million in leveraged short positions could face liquidation. This cascade of forced buying is projected to accelerate upward momentum, with the $4,500 level emerging as a plausible technical target fueled by this liquidity event.
Traders are advised to monitor trading volume patterns and RSI behavior closely, as these metrics will provide critical confirmation of whether ETH will continue its rally or undergo a corrective retracement. The current technical setup presents a tension between bullish breakout potential and corrective warning signals.