Ethereum above 4,000 as signals diverge on recovery

Ethereum pushed back above the key 4,000 level on Monday, trading around $4,060 in Asian hours after a bounce from a recent low near $3,700. The move marked roughly a 4 percent intraday gain and comes amid divergent technical and on‑chain signals that have traders and analysts debating whether the token is beginning a sustainable recovery or merely pausing before a deeper pullback.

Several near‑term indicators point to easing selling pressure. The Relative Strength Index has shown a bullish divergence, a pattern that occurs when price makes lower lows while the indicator makes higher lows, often interpreted as a sign that downward momentum is waning. Large addresses have also been accumulating, with on‑chain tallies showing a modest rise in holdings in mid‑October. Exchange net outflows have deepened, meaning more coins are leaving trading venues than entering, a flow that typically corresponds with increased long‑term hodling. Market participants say open interest in futures has dropped significantly from its peak, which some traders see as a reset of excess leverage that could reduce the likelihood of an overheated rebound.

At the same time, momentum gauges on longer...