Ethereum hit $4,300 before a slight correction. Is this just a pause before ETH targets the $5,000 milestone?
Ethereum ($ETH) has been one of the standout performers this month, breaking above $4,300 before easing slightly to the current $4,223. While some traders worry this is the start of a deeper correction, the technical outlook suggests it could be a healthy pullback before a bigger rally toward $5,000.
The 4-hour ETH/USD chart shows a strong rally from early August, breaking through multiple resistance zones, including $3,838.9, which is now acting as key support. ETH is trading well above both the 50-day SMA ($3,756) and the 200-day SMA ($3,507), confirming that the bullish trend remains intact.
The RSI is currently at 72.16 — slightly overbought — indicating a short-term pullback is likely. The highlighted zone on the chart between $3,838 and $3,756 marks an ideal area for price consolidation before a potential move higher.
If $Ethereum drops into the $3,838-$3,756 range and finds strong buying momentum, it could be the launchpad for the next bullish leg.
The uptrend remains strong, but chasing ETH at current levels without a pullback could be risky. Historical price action suggests that when ETH approaches overbought RSI levels, it often consolidates before making its next major move. This makes the $3,838 zone a crucial battleground for bulls and bears.
