Ethereum Faces Resistance at $4,900: What Does It Mean for Investors?
Ethereum, one of the leading cryptocurrencies, has been struggling to break past the key resistance level of $4,900. Analysts are now warning about the potential formation of a double top—a bearish technical indicator that could signal a drop in price. This development has left traders wondering whether Ethereum’s struggles might lead to a broader altcoin season.
Price Retracement Levels to Watch
Technical indicators suggest Ethereum’s price could retrace to several critical support levels. Current estimates indicate shallow corrections to $3,880, moderate dips toward $3,500, or even deeper corrections reaching $3,200. These retracement levels are being closely monitored as investors assess Ethereum’s next possible move in the coming weeks.
Despite Ethereum recently achieving a slight new high, the Relative Strength Index (RSI) showed bearish signals as it topped out during the completion of subwave 3 within a larger wave 5 structure. According to experts, such patterns often suggest significant price consolidation or corrections in the near term.
Is an Altcoin Season on the Horizon?
As Ethereum shows signs of resistance and retracement, attention is shifting toward altcoins. Altcoin season—marked by a rotation of capital from major cryptocurrencies like Bitcoin and Ethereum to smaller altcap tokens—may be on the horizon. Analysts see strength in several altcoins while Ethereum struggles, hinting at potential investment opportunities in the wider crypto market.
MetaMask, a popular crypto wallet, can help traders diversify their portfolio into lower-cap altcoins securely and easily. By using MetaMask, investors can make informed trades during this potential market rotation.
What’s Next for Ethereum?
Despite the current price resistance, some experts, including crypto trader TedPillows, remain bullish on Ethereum’s long-term potential. He believes Ethereum could reach $10,000 during this cycle but foresees a potential correction in September, driven by historical patterns. This anticipated dip might present a significant buying opportunity for investors before another rally in Q4 2025.
Conversely, a surprisingly strong performance in September could negate the need for a correction, potentially paving the way for new highs above $6,000. Traders are sticking to adaptive strategies, monitoring short-term price movements, and shifting capital as necessary to optimize returns.
Final Thoughts
The dynamics between Ethereum and altcoins point to a critical period ahead for cryptocurrency investors. Whether Ethereum pushes through its resistance levels or falters, the market is bracing for notable shifts that could reshape strategies. For now, traders are keeping a close eye on technical indicators and emerging trends to capitalize on the evolving crypto landscape.
