## **PEPE Tests Key Resistance Level Repeatedly, Extending Bull Flag Pattern Maintains Consolidation** PEPE is currently priced at $0.054412, down 3.2% over the past 24 hours, but this correction has not broken the support. The price is oscillating between $0.05422 (support) and $0.0546 (resistance), forming a typical high compression zone. Most importantly, the elongated **bull flag pattern** on the short-term chart is extending, indicating that buyers and sellers are still battling, with no side gaining a clear advantage. ## **BTC and ETH Stable, but PEPE Alone Under Pressure** Bitcoin and Ethereum have increased by 1.3% and 0.8% respectively over the past 24 hours, while PEPE has declined—this divergence clearly indicates the situation. Currently, PEPE is quoted at 0.0104878 BTC relative to Bitcoin and 0.081416 ETH relative to Ethereum. This suggests that the selling pressure on PEPE is more driven by its own market dynamics rather than overall market trends. The price has not broken below the support level of $0.05422, indicating that there is still buying interest at this bottom zone. ## **What Does the Extended Bull Flag Signal?** This **extended bull flag** appears to be a consolidation, but it carries significant information for traders. Long-term consolidation is often accompanied by liquidity contraction and price pressure concentrated at specific levels, with the current resistance at $0.0546 being the focal point. The continued extension of the bull flag indicates that the market is waiting—waiting for a directional breakout. Whether it breaks above $0.0546 or falls below $0.05422 will determine the subsequent trend. ## **What Are Traders Watching Next?** In the short term, PEPE’s performance depends on whether it can sustain within this narrow range. If it continues to stick between $0.05422 and $0.0546, the **bull flag extension** will further strengthen, typically signaling energy accumulation before a breakout. However, traders should be alert that a 3.2% intraday decline suggests selling pressure is not just a bluff. The key will be the trading volume—whether there is enough to support a breakout or if the market remains stalemated. The interaction between this resistance and support level will be the core focus in determining PEPE’s near-term direction.

## Ethereum Climbs Past $3K But Sellers' Retreat Masks an Old Problem Ethereum has quietly recovered over 10% since its December 18 bottom, reclaiming territory above the $3,000 mark at current prices of $3.11K. The rebound feels urgent, but beneath the surface lies a pattern that has fooled traders before. A bullish divergence on the RSI has reappeared — the same technical setup that sparked a 27% surge just weeks ago. Yet that rally crashed into a ceiling it couldn't break. Now history is repeating, and Ethereum faces a critical test. ## When Momentum Lies: The RSI Setup That Keeps Failing The current reversal signal stems from a classic technical setup. Between November 4 and December 18, the Ethereum price printed lower lows while the RSI (Relative Strength Index) — a gauge of buying and selling momentum — carved out higher lows. This divergence between price weakness and momentum strength is textbook bullish. It suggests sellers are exhausted even as the price keeps dropping. The problem? This exact pattern triggered a nearly 27% rally that terminated at $3,470. That level rejected the upside decisively. Now, with the same bullish divergence forming again, Ethereum is attempting to replay the same script. The question isn't whether momentum has shifted — it has. The question is whether momentum is enough. ## On-Chain Data Shows Sellers Have Vanished (For Now) Beyond technical indicators, chain metrics are flashing a compelling narrative. The Spent Coins Age Band metric tracks how many ETH tokens are actively moving between holders. A sharp collapse in this metric signals that potential sellers have stepped back dramatically. On December 19, approximately 431,000 ETH was being spent or transferred. By December 22, that figure plummeted to just 32,700 ETH — a 92% collapse in coin movement. What does this mean? Older holders are sitting tight. Short-term traders aren't aggressively dumping. The supply overhang has temporarily lifted, removing a major headwind for price recovery. This reduced selling pressure directly explains why momentum indicators have stabilized and why the bounce has legs. But it also raises an uncomfortable question: Is this a genuine shift in market structure, or merely a temporary pause before sellers return? ## The Resistance Wall That Broke a Rally Before The technical picture deteriorates when examining resistance levels. Ethereum must first defend the $3,040 zone to maintain momentum. A close below this level invalidates the rebound setup entirely. More critically, $3,470 remains the true hurdle. This is where the previous bullish divergence rally died. If Ethereum fails here again, it confirms that the pattern is unreliable — a bear trap disguised as a reversal. A decisive close above $3,470 would be the first genuine confirmation. That breakout could extend toward $3,660 and eventually $3,910, both significant resistances from Q4 2024. ## When Momentum Reverses: Downside Risks Are Real The optimistic case depends entirely on holding $3,040. Lose that level, and the rebound collapses back toward $2,940. Below that, $2,770 offers temporary support, with $2,610 providing deeper downside protection. The timing is particularly vulnerable. On-chain metrics show a temporary reduction in selling, not an elimination of it. If sentiment shifts or technical resistance proves sticky, coin spending could spike again just as quickly as it fell 92% in three days. ## The Bottom Line: Bullish Divergence Without Bullish Conviction Ethereum's 10% rebound is legitimate, supported by both RSI momentum and a dramatic reduction in on-chain selling activity. But the setup is fragile. The same bullish divergence pattern failed just weeks ago at $3,470. Until Ethereum breaks that level decisively, this remains a bounce attempt within a broader range, not the start of a sustained trend reversal. Traders betting on continuation should be prepared for rejection at familiar resistance — history suggests it's the likely outcome.