Ethereum Gains After $4,900 ATH Amid Supply Shock
Ethereum price surged to an all-time high (ATH) of $4,953 before retracing to $4,626. The rally was driven by falling exchange reserves and strong on-chain demand, creating conditions for a possible supply shock. With fewer ETH available on centralized exchanges, even modest buying interest can trigger sharp price moves. On-chain technical indicators show an hourly RSI near 33 (oversold) and a weakening OBV at 1.23 million, suggesting short-term volatility within a broader bullish trend. Analysts highlight Ethereum’s relative strength versus Bitcoin and advise traders to monitor retest levels around the breakout zone. A successful hold above support could confirm the next leg up, while failure may lead to deeper consolidation. Key takeaways: track exchange reserves, watch RSI and OBV, and plan entries around retest zones in this price discovery phase.
Bullish
Ethereum’s all-time high and falling exchange reserves indicate strong fundamental momentum. Historically, when on-chain supply metrics tighten, even moderate demand can spark rapid price advances, as seen in previous ETH rallies in 2021. The current retracement post-ATH aligns with normal profit-taking, but technical indicators like an oversold RSI and slight OBV weakening suggest a healthy consolidation, not a trend reversal. Traders typically view successful retests of breakout zones as confirmation for further upside. Given the broader crypto market’s stable performance and Ethereum’s dominance in DeFi and institutional interest, the medium to long-term outlook remains bullish. In the short term, volatility may increase, but the supply shock narrative supports renewed buying pressure.