Ethereum recently experienced a notable rally following the U.S. election, climbing to $3,446 and achieving a 20% gain. However, resistance near $4,000 has stalled further upward momentum, with profit-taking and whale activity playing significant roles.

Factors Behind Ethereum’s Stalled Rally

1. Profit-Taking Pressure

Following the recent price surge, investors began locking in profits, which has capped Ethereum’s growth.

Notably, Tron founder Justin Sun deposited 19,000 ETH to HTX during the rally, signaling selling activity.

2. Whale Movements and Market Sentiment

Recent data shows conflicting signals from whales:

A large whale accumulated 18,049 ETH, indicating bullish sentiment.

Conversely, two significant holders deposited 11,286 ETH ($36 million) to Binance, hinting at potential sell-offs.

Such large transfers to exchanges often precede liquidations, adding downward pressure to Ethereum’s price.

3. Psychological Resistance at $4,000

Despite reaching multi-month highs, Ethereum has failed to breach the $4,000 psychological resistance level.

Technical Analysis: Indicators Show Waning Momentum

1. MACD Indicator

The Moving Average Convergence Divergence (MACD) suggests weakening bullish momentum.

Flattening histogram bars indicate reduced upward pressure, which may hinder Ethereum’s ability to surpass resistance levels.

2. Bullish Bear Power (BBP)

The BBP indicator reflects recent upward movement followed by signs of leveling off.

The inability to reach new highs suggests diminishing bullish strength, potentially empowering bearish forces.

Key Support and Resistance Levels

1. Support Levels

Ethereum must maintain support at $3,115, aligned with the 38.2% Fibonacci retracement from the October 2023–March 2024 uptrend.

A break below this level could lead to a deeper correction, with the next key support at the 200-day Simple Moving Average near $2,953.

2. Resistance Levels

To regain bullish momentum, Ethereum needs to challenge resistance at $3,490 and aim for the critical $4,000 threshold.

Current Market Outlook

At present, Ethereum is trading at $3,130.67, down 4.79% over the last 24 hours, retreating from an earlier high of $3,281. While the short-term trend remains positive, indicators suggest the bullish momentum may weaken further unless significant buying pressure emerges.

Ethereum’s ability to hold above key support levels will determine whether it can sustain its upward trajectory or face a more pronounced correction.

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