- Ethereum recently ran into strong resistance near $4,900, with fading momentum now casting doubt on a smooth breakout to fresh highs.
- The MACD has turned slightly positive, and the RSI remains neutral—signs that Ethereum might be finding its footing.Â
- Altcoin dominance bounces from long-term support, fueling buzz around a fresh rotation from Ethereum into broader altcoin opportunities.
Ethereum is flashing warning signs near $4,400 as bulls lose steam. While ETH stalls below key resistance, altcoins are heating up fast—fueling fresh talks of a new AltSeason on the horizon.
Elliott Wave Structure Signals Possible Correction
A recent tweet from CasiTrades outlines Ethereum’s current Elliott Wave structure, showing five waves forming since April. The third wave ended near $4,900, inside a supply zone between $4,800 and $5,000. Price has since retraced, beginning a corrective fourth wave.
Fibonacci retracement levels place support at $3,881 (0.382), $3,547 (0.5), and $3,212 (0.618). A shallow retracement could lead to a fifth wave targeting $5,600–$6,000. However, if Ethereum reaches the 0.618 level, it may indicate a double top around $4,900 rather than a breakout.
Momentum Indicators Reflect Neutral to Bearish Sentiment
The 4-hour ETH chart from Binance reflects slowing momentum. The Relative Strength Index (RSI) stands at 45.38, below the 50 level, signaling neutral to bearish conditions. RSI values below 50 have continued since the mid-August pullback.
                                         Source CryptoRank
MACD readings remain below the zero line but recently crossed above the signal line. The histogram turned positive with a reading of 3.90, suggesting declining bearish pressure. However, volume remains low, with 38.03K ETH traded in the latest 4-hour candle, indicating limited buying strength.
Altcoin Market Strengthens Relative to Ethereum
The weekly OTHERS/BTC chart shows altcoins gaining strength against Bitcoin, with Ethereum showing relative weakness.CasiTrades noted this shift, suggesting early signs of capital rotating from Ethereum to altcoins. The current chart mirrors previous altcoin market cycles from 2018 and 2021.
The ratio has again bounced off a long-term ascending support trendline. In past market cycles, altcoins have kicked off strong rallies right after bouncing from the same support zone. With Ethereum now moving sideways, this pattern could be signaling that traders are shifting their focus and capital toward altcoins once again.
