There are several reasons to believe ETH will get rejected from this area once again:
1_Open interest is extremely high, meaning everyone’s borrowing money to add even more to their long positions. That’s definitely not healthy for a sustained uptrend. We might see a “staircase up, elevator down” type of move soon.
2_This rally is way overextended — we’ve been in a parabolic uptrend with no meaningful correction for the past 47 days. It's been a consistent pattern of higher lows and higher highs. We need at least 2–3 weeks of downtrend to regain strength for another solid move upward.
3_There’s no real fundamental news backing this move. There’s the 401(k) Trump order, but that mostly affects BTC — and even then, it would take ages for any actual money to hit the market (if it ever does). This ETH pump is mostly driven by FOMO — people buying just because others are buying ETFs. Pure hype about ETH hitting some fantasy number in the future.
4_Seasonal weakness matters — I highly doubt ETH can break through major resistance during the summer, especially in a historically bearish month like August.
I expect a correction wave to the downside — at least somewhere bellow the $3,350 area( Why 3350? because it's most recent higher low) . We might get a fakeout above $4,100 before that happens. From there, we can reassess the market to see if it’s ready to finally take out that $4,100 resistance or not.
1_Open interest is extremely high, meaning everyone’s borrowing money to add even more to their long positions. That’s definitely not healthy for a sustained uptrend. We might see a “staircase up, elevator down” type of move soon.
2_This rally is way overextended — we’ve been in a parabolic uptrend with no meaningful correction for the past 47 days. It's been a consistent pattern of higher lows and higher highs. We need at least 2–3 weeks of downtrend to regain strength for another solid move upward.
3_There’s no real fundamental news backing this move. There’s the 401(k) Trump order, but that mostly affects BTC — and even then, it would take ages for any actual money to hit the market (if it ever does). This ETH pump is mostly driven by FOMO — people buying just because others are buying ETFs. Pure hype about ETH hitting some fantasy number in the future.
4_Seasonal weakness matters — I highly doubt ETH can break through major resistance during the summer, especially in a historically bearish month like August.
I expect a correction wave to the downside — at least somewhere bellow the $3,350 area( Why 3350? because it's most recent higher low) . We might get a fakeout above $4,100 before that happens. From there, we can reassess the market to see if it’s ready to finally take out that $4,100 resistance or not.
Trade active
I will try my luck and enter some short position after the weekend finishes because sometimes crypto acts crazy during weekends especially when it's near a major point of interest 
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.