Ethereum Resistance at $4,100 Could Ignite Short Squeeze
Ethereum resistance at $4,100 is under test as ETH trades around $4,186. A decisive breakout above this Ethereum resistance level could trigger a short squeeze. Analysts target a rapid surge toward $4,400–$4,500. Historical data shows $4,100 halted advances in March and December 2024. Technical indicators are bullish. ETH recently broke a descending wedge and closed above the upper Bollinger Band. The RSI reads 71.97, hinting at overbought conditions. The 20-day SMA at $3,740 provides near-term support. Key support zones include $3,740 and $3,550. Volume rose to 14.4K ETH during the latest rally. If ETH holds above $4,200, medium-term targets of $4,750 and $5,200 become plausible. A failure to sustain $4,100 may lead to a retest of $3,740 or deeper at $3,392. Traders should monitor the $4,100 resistance break for bullish confirmation and manage risk around support levels.
Bullish
Breaking through a key resistance often sparks strong buying pressure. The Ethereum resistance test at $4,100 recalls similar scenarios in March and December 2024, when failures led to pullbacks. A successful breach, coupled with bullish signals—like a descending wedge breakout and high trading volume—could drive a sharp short squeeze toward $4,400–$4,500 in the short term, and possibly $4,750–$5,200 medium-term. Although the RSI suggests overbought conditions, strong momentum and supportive moving averages underpin a bullish outlook. Traders will be watching the $4,100 hold as confirmation. Conversely, a drop below this level could trigger a retracement to $3,740 or $3,392. On balance, the potential upside from an Ethereum resistance breakout outweighs the risk of a pullback, making the market response likely bullish.