Ethereum Faces Potential Pullback After Rising Wedge Breakdown and Bearish RSI Divergence

Key Points

1. Ethereum broke down from a rising wedge pattern that formed since early July, starting near $2,400, indicating weakening bullish momentum.

2. Bearish RSI divergence (price higher highs, RSI lower highs) further confirms the loss of upward strength.

3. The $3,150 level is a critical liquidity zone that could trigger long liquidations and amplify downward momentum if selling pressure persists.

4. Lower support levels to watch include $2,800-$2,233, historically significant consolidation and long-term support areas.

5. Despite the MACD remaining technically bullish, its shrinking histogram bars suggest weakening momentum, warranting caution for traders.