Ethereum Approaches Critical Channel Resistance: Analyzing Potential Breakout and Divergence Signals

Key Points

1. Ethereum (ETH) is trading near the upper limit of its long-term channel, showing hesitation with a minor pullback.

2. The Relative Strength Index (RSI) is at 70.64, indicating overbought conditions but with potential for further upward movement.

3. A bearish divergence is forming as ETH's price rises while the RSI fails to match those highs, which historically precedes reversals.

4. The Stochastic RSI shows an upward crossover, suggesting potential momentum but with uncertainty about a breakout or rejection.

5. Key resistance levels and trading volume will determine whether ETH breaks out or faces rejection at the current channel resistance.