• SharpLink Gaming transferred $23.46M USDT to Galaxy Digital, signaling strong ETH accumulation.
• Ethereum trades at $4,588, testing the $4,955–$5,000 resistance zone that could define its next major move.
• RSI divergence near overbought levels raises caution, hinting at potential retracement despite bullish structural breakout.

As investors rush in to capture the ongoing Ethereum rally, which reached an ATH last week, Sharolink has not been left behind. According to a recent confirmation post by Lookonchain, the company has made a notable transaction.

SharpLink Gaming transferred 23.46 million USDT to Galaxy Digital’s OTC desk in a fresh transaction, signaling another major move to acquire Ethereum. The transfer follows a series of large-scale flows between SharpLink and custodians, reflecting heightened accumulation activity and strategic positioning in the cryptocurrency market.

As the purchases continue, a TradingView technical analysis reveals that Ethereum (ETH) is trading at $4,588 after a sharp rejection from the $4,800 zone, placing it directly below a long-term resistance area that has historically defined market tops. The weekly chart suggests traders are now confronting a crucial test of momentum, with technical indicators flashing mixed but decisive signals.

Resistance Zone and Fibonacci Levels

Confirmed via the technical analysis, the price action shows Ethereum pressing against the $4,955–$5,000 resistance band, a zone labeled as “ultimate resistance” on the Murrey Math framework. This level overlaps with the 0.786 Fibonacci retracement at $4,191, confirming it as a pivot region where buying strength collides with strong historical selling pressure.

A rejection from this zone could see ETH retest lower supports at $3,750 (6/8 pivot reverse) and $3,591 (Fib 0.618), levels that remain critical for sustaining its bullish structure. Deeper corrections could pull the asset back toward $3,125, marking the top of its broader trading range.

On the upside, a weekly close above $5,000 would invalidate resistance and potentially trigger a continuation rally toward overshoot levels at $5,625 and $6,250.

Momentum and RSI Divergence

The Relative Strength Index (RSI) paints a more cautious picture. Currently at 70.33, ETH is at the threshold of overbought territory, with a visible bearish divergence emerging against price action. While the token has broken out of its long-term descending wedge, momentum indicators suggest buyers may be losing steam.

This divergence is notable given that similar conditions preceded Ethereum’s retracement from its all-time highs in 2021. A failure to reclaim momentum could increase selling pressure, aligning with the resistance rejection zone.Nonetheless, the exit of a multi-year wedge established is a strong bullish undertone, which implies that the structure is sound, even though there is short-term vulnerability.

Traders are now left pondering whether Ethereum will turn its 5,000 ceiling into support or the market is ready to undergo a bigger pullback before resuming a leg up. The present state of Ethereum positions it to increase in volatility with investors closely monitoring where technical barriers meet historical price memory.