Ethereum (ETH) Price Rally Forecast Despite Technical Divergence Warning

Despite a concerning chart divergence warning for Ethereum (ETH), on-chain metrics indicate a strong possibility of a rally up to $4,500. This conflicting signals suggest that while technical analysis may hint at a short-term warning, on-chain data provides a more optimistic outlook for ETH's price potential in the cryptocurrency market.

Chart divergence warnings often highlight potential trend reversals or a slowdown in momentum, which can cause caution among traders. However, on-chain metrics—such as transaction volume, wallet activity, and network health—are often more reflective of underlying demand and long-term investor confidence. If these on-chain indicators are signaling bullish momentum, it could suggest that ETH is still on track for significant growth despite short-term technical warnings.

The prediction of a rally to $4,500 aligns with the recent positive sentiment around Ethereum's network improvements, DeFi expansion, and broader cryptocurrency market dynamics. Investors should weigh both technical and fundamental signals carefully. While divergence warnings shouldn't be ignored, on-chain data suggesting sustained network activity might override short-term technical concerns, pointing to an optimistic price trajectory for ETH in the upcoming weeks.