Ethereum (ETH) Price: Technical Indicators Show Bearish Momentum Below $4,550

TLDR

• Ethereum price struggling to maintain momentum above $4,550
• ETH showing bearish signs after failing to break $4,630 resistance zone
• Record 1 million ETH ($4.96 billion) waiting in validator exit queue
• Exit waiting time extended to nearly 19 days
• Despite validator exodus, analysts remain optimistic with $7,500 year-end target

Ethereum, the second-largest cryptocurrency by market capitalization, is showing signs of weakening momentum after recent attempts to push higher. The cryptocurrency has been facing resistance at the $4,630 level, with bears maintaining control of the market.

ETH price recently started a recovery wave after testing the $4,320 zone. The price managed to climb above $4,400 and $4,450 resistance levels. It even surpassed the 23.6% Fibonacci retracement level of the key decline from the $4,955 swing high to the $4,310 low.

However, the bears remained active near the $4,630 resistance zone. Despite two attempts, bulls failed to gain strength above this key level. The 50% Fibonacci retracement level of the decline from $4,955 to $4,310 is acting as a barrier.

The price has reacted to the downside below $4,600. There was also a break below a bullish trend line with support at $4,550 on the hourly chart of ETH/USD. Ethereum is now trading below both $4,550 and the 100-hourly Simple Moving Average.

On the upside, Ethereum could face resistance near the $4,550 level. The next key resistance is near $4,600, with a major resistance level at $4,630. A clear move above this resistance might send the price toward $4,720.

An upside break above $4,720 could trigger more gains in the coming sessions. In this scenario, Ether could rise toward the $4,800 resistance zone or even reach $4,880 in the near term.

Record Validator Exodus

Ethereum is currently experiencing the largest validator exodus in crypto history. Over 1 million Ether tokens, worth approximately $4.96 billion, are currently waiting to be withdrawn from staking through Ethereum’s proof-of-stake network.

This mass exodus has extended the validator exit waiting time to a record 18 days and 16 hours, according to blockchain data from validatorqueue.com.

While this doesn’t necessarily mean all validators are looking to sell their holdings, a portion of the nearly $5 billion may be sold to lock in profits. This comes as Ether has risen 72% over the past three months.

In contrast to the 1 million Ether set to exit the network, only 737,000 Ether are awaiting to be staked in the entry queue, with an average wait time of 12 days and 19 hours.

Market Optimism Remains

Despite these concerns, some analysts view the situation positively. Marcin Kazmierczak, co-founder of RedStone blockchain oracle firm, believes the exit queue hitting 1 million ETH reflects healthy market dynamics rather than a cause for concern.

Kazmierczak noted that these exits pale in comparison to the institutional capital flowing into Ethereum. The “unprecedented demand” from public vehicles such as treasury firms and exchange-traded funds means that validator sales are “easily absorbed by this institutional appetite.”

Ether remains the “liquidity magnet” of the crypto industry, with Ether futures open interest nearing $33 billion, signaling solid institutional interest, according to Iliya Kalchev, dispatch analyst at digital asset platform Nexo.

Standard Chartered has reiterated that ETH and ETH-treasury firms remain undervalued even at current levels, projecting a $7,500 year-end target. Combined with Polymarket odds now pricing a 26% chance of ETH reaching $5,000 this month, Ethereum’s role as the market’s liquidity magnet is hard to ignore.

The network remains stable with over 1 million active validators and 35.6 million Ether, representing over 29.4% of the total supply.

Investor demand may be shaped by Thursday’s release of the US initial jobless claims report, along with Friday’s release of the Personal Consumption Expenditure Price Index, the Federal Reserve’s preferred inflation gauge.

If Ethereum fails to clear the $4,550 resistance, it could continue to move down. Initial support is near the $4,440 level, with major support at $4,400. A clear move below $4,400 might push the price toward $4,320. Further losses could send the price toward $4,250, with the next key support at $4,150.

The hourly MACD for ETH/USD is gaining momentum in the bearish zone, while the RSI is now below the 50 zone.

The post Ethereum (ETH) Price: Technical Indicators Show Bearish Momentum Below $4,550 appeared first on Blockonomi.