Ethereum Warning: Chris Weston Identifies Potential Barrier at 4100
Ethereum Outlook: Cautiously Bearish in the Short Term, Emphasizing Momentum Trading
According to Chris Weston's analysis, the current outlook for Ethereum is cautiously bearish in the short term. This outlook is based on the importance of momentum trading rather than buying the recent dips. Weston warns that Ethereum may drop further to around the $4,100 level, a significant support zone, before regaining upward momentum.
Weston highlights a critical resistance point for Ethereum at the $4,800 level. Breaking above this zone could unleash strong bullish momentum, potentially propelling Ethereum towards $4,800–$5,000 targets by the end of 2025. This optimistic forecast is driven by institutional interest and favorable fundamentals.
However, despite Ethereum's large market cap and significant daily trading volume, there is strong selling pressure near resistance levels. Rising unstaking activity and selling indicate some profit taking and liquidity shifts around critical price points like $4,233 and $4,100.
Weston places particular emphasis on tracking momentum rather than impulse buying during dips. He considers momentum confirmation essential before establishing new positions, warning against buying simply because prices have pulled back. This approach suggests waiting for evidence that buyers are stepping in and momentum is turning bullish again before committing capital.
The broader crypto market dynamics show altcoins like Ethereum experiencing capital rotation, with some resilience despite Bitcoin’s struggles. However, the near-term price action remains uncertain with potential testing of key support levels, and cautious trading is recommended amidst market volatility.
In summary, Chris Weston’s analysis advocates a disciplined momentum-based trading approach for Ethereum amid resistance around $4,800, profit-taking pressures at current levels, and the possibility of a further dip toward $4,100 before a sustained rally resumes. Momentum traders might wait for a price break above resistance before entering, demonstrating patience as they follow the trend and do not attempt to pick dips. Risk management in momentum trading is crucial, with the use of stop-losses to prevent reversals. Decisions can have turnaround times of weeks or even days.
Read also:
- Susanne Otto to Develop Additional Housing Units
- Deepwater Port Construction Permits for Projects within the South Central Region's Air Regulations
- Citizen Thekla Walker, Minister, urges: "Let's face our responsibilities at home"
- Editorial Correspondence: Justifying the Elimination of a Program Earmarked for Reducing Our Own Carbon Footprint?
