• Ethereum slips 1.98% to $4,476 as trading volume falls 16.19% to $35.16B, signaling weak activity.
• Analysts warn of a possible double top near $4,900 as RSI turns bearish and key retracement levels loom.
• Altcoin season may be emerging as capital shifts from Ethereum to stronger-performing alternative coins.

Ethereum (ETH) is currently trading at $4,476, with a 1.98% decrease in the past 24 hours. The trading volume is showing a negative trend, falling by 16.19% and currently standing at $35.16 billion. This change indicates slower market involvement, with sellers having greater power in the short run.

Source: CoinMarketCap

Over the past week, ETH has increased its price by 4.63%. This steady upward movement highlights investor confidence despite the recent daily setback. Ethereum is still gaining momentum, albeit with a weak trend, so that volatility in the short term is balanced by wider positive momentum.

Ethereum Weakness Raises Concern Over Deeper Correction

Crypto analyst CasiTrades highlighted that Ethereum is unable to overcome resistance. The asset recorded a marginal new high, and the Relative Strength Index (RSI) became negative. This was when ETH formed subwave 3 in a bigger wave 5. The convergence at the 0.618 extension raised concerns about the possibility of a double top at the $4,900 level.

Currently, the technical levels are considered to be of paramount importance. An insignificant correction can drive ETH to $3,880 at the 0.382 retracement. Further retrenchment may challenge 0.5 at $3,500. In case of more weakness, ETH can continue to weaken to 0the .618 retracement at around $3,200. These levels are being closely watched by traders to understand whether Ethereum will stabilize or experience more steep declines.

Source: X

In case ETH is at higher retracement levels, there is still a possibility of a new attempt to hit the level of $5,600–$6,000. Nevertheless, further retracement would probably limit the potential of the upsides. With that, ETH may not break its previous high but only test $4,900, thus confirming a double-top structure. This would constrain growth and support bearish sentiment in the market.

Also Read: Solana Price Nears $233 Resistance: Could a Breakout Send SOL to $457?

Open Interest Drop Highlights Caution in Ethereum Market

CoinGlass data shows that trading volume had fallen by 22.91 percent to $97.70 billion. Open interest fell 1.64 percent to 61.49 billion dollars. The ETH OI-weighted funding rate stands at 0.0030%. These numbers indicate reduced leverage and diminishing speculation, highlighting rising caution on the part of traders.

Source: CoinGlass

Another trend is implied by Ethereum underperforming relative to other cryptocurrencies. Analysts identify a rotation of capital into altcoins that have stronger momentum. This trend has been dubbed altcoin season and is indicative of capital flowing out of Ethereum and into other assets. 

The short-term future of Ethereum is unclear. Weekly gains point to some strength; however, daily losses and technical indicators point to danger. In the following weeks, investors will pay attention to the ETH’s reaction to support levels. An effective defense would restore momentum, and more fundamental corrections might make Ethereum disadvantaged in comparison to emerging altcoins.

Also Read: Ethereum Gains Strength as Ark Invest Backs ETH With Bullish Signal