• Ethereum’s momentum intensifies as its RSI hits a cycle high of 87.84, signaling robust bullish strength while the price nears the critical $4,200 resistance level.

• The recent surge from $2,600 to nearly $3,900 is supported by increasing volume and a well-established bullish structure, indicating sustained market confidence.

• According to COINOTAG sources, strategic profit-taking by early buyers around $2,520 has not diminished overall holding, with nearly 2 million ETH still retained amid fresh demand absorbing market supply.

Ethereum’s RSI peaks at 87.84 as price approaches $4.2K resistance, backed by strong volume and strategic holder activity, signaling continued bullish momentum.

Ethereum’s RSI Hits Cycle High, Reflecting Strong Uptrend Momentum

Ethereum’s Relative Strength Index (RSI) reaching 87.84 on the daily chart marks an exceptional level in the current market cycle. This elevated RSI suggests that the asset is experiencing strong buying pressure, yet it does not inherently indicate an imminent reversal. Market participants often interpret such readings as a sign to exercise caution, but the absence of bearish divergence reinforces the strength of the ongoing uptrend. The ability of the RSI to remain elevated while prices continue to rise highlights the resilience of Ethereum’s bullish momentum in this phase.

Price Action Nears Key Resistance Amid Increasing Volume

ETH’s price trajectory from below $2,600 to highs around $3,860 demonstrates a consistent pattern of higher highs and higher lows, supported by robust daily closes. The current consolidation zone between $3,000 and $4,200 represents a critical battleground where buyers have shown persistent interest, as evidenced by rising trading volumes. Breaking above the $4,098 to $4,200 resistance range would likely confirm the continuation of the bullish trend, potentially paving the way for new cycle highs. This price behavior underscores the market’s confidence and the strength of demand at these levels.

Holder Behavior and Market Supply Dynamics Reveal Strategic Positioning

Data from Glassnode reveals that wallets which accumulated Ethereum near the $2,520 mark have begun realizing profits, as indicated by the diminishing intensity of the red band on the cost basis heatmap. Despite this profit-taking, these holders continue to maintain a substantial position of approximately 2 million ETH. This pattern suggests a strategic approach to managing risk while maintaining exposure to further upside potential. Concurrently, new market participants are actively absorbing available supply, which supports price stability and growth. The combination of profit-taking and fresh demand highlights a balanced market environment conducive to sustained upward momentum.

Conclusion

Ethereum’s current market dynamics, characterized by an RSI at cycle highs, strong price momentum, and strategic holder activity, point to a resilient bullish trend. While elevated RSI levels warrant cautious monitoring, the absence of bearish signals and continued volume growth support the prospect of further gains. Investors should remain attentive to the $4,200 resistance zone, as a decisive breakout could signal the next phase of Ethereum’s upward trajectory. Overall, the market exhibits a healthy balance between profit-taking and new demand absorption, reinforcing confidence in Ethereum’s near-term outlook.