ETH Smashes Resistance, Is $5K the Next Stop?

Key Insights 

• Ethereum’s 4H breakout signals potential rally toward $5,000 if support at $4,300 holds firm.
• Binance heatmap shows heavy liquidity zones between $4,500–$4,700, setting stage for volatile price moves.
• Monthly RSI divergence warns momentum is fading despite Ethereum climbing near key resistance levels.

Ethereum (ETH) was trading at $4,406.41 with a 24-hour trading volume of $26.62 billion. The token has slipped 7% in the past day and 4% over the week. Price action shows ETH sitting close to major resistance while traders weigh bullish momentum against signs of weakening strength.

Breakout on the 4H Chart

The 4-hour chart shows ETH breaking above a descending trendline that capped price throughout late August.

 Kamran Asghar said,

 “$ETH breakout confirmed on the 4H chart. The next target is $5,000+.”

Earlier in the month, a similar breakout produced a 14.40% gain. Current projections suggest that ETH could follow a comparable path, moving toward $4,800–$5,000 if buying pressure holds. Immediate support sits near $4,300, a level that must hold to keep the structure intact.

High Leverage Liquidity Zones

Data from Binance’s ETH/USDT liquidation heatmap shows dense liquidity between $4,500 and $4,700. These zones represent concentrations of stop orders and leveraged positions.

 Kyle Chassé noted,

 “$ETH Liquidation Heatmap (1W). High leverage liquidity.”

If price climbs into this area, volatility could increase as leveraged trades unwind. On the downside, lighter liquidity sits around $4,200–$4,300, leaving that zone vulnerable if support gives way.

Bearish Divergence on Monthly RSI

The longer-term chart presents a different view. Ethereum has been climbing toward the $4,400–$4,700 band, but momentum indicators are diverging. The monthly Relative Strength Index (RSI) is sloping downward while price pushes upward, a sign of weakening strength.

Alejandro₿TC warned, “Ethereum is flashing a bearish divergence on the monthly RSI. The price is climbing. Momentum isn’t.” He added, “usually mark the end of the run, not the start of a new one.”

Historically, this pattern on monthly charts has preceded cycle tops or extended corrections. Traders are watching closely to see whether ETH can sustain above resistance or if fading momentum halts the advance.

Short-term charts point to the possibility of ETH testing $5,000 as breakout momentum builds. At the same time, the bearish divergence on the monthly RSI signals that strength may be waning. The $4,500–$4,700 liquidity zone is now the key range where the next move is likely to be decided.