Is this Ethereum rebound really solid? What does the price-volume relationship reveal?

Recently, ETH's price action has gotten many people excited, but after calmly analyzing the charts, I noticed a warning signal—the price is going up, but the trading volume is shrinking. This kind of divergence is often not a good sign.

The price has indeed been pushed up, but what about the buying power? If you closely watch the candlesticks, you’ll see that the higher the price goes, the weaker the trading volume becomes. What does this indicate? There actually isn’t enough capital willing to step in at these levels. The rally lacks “conviction,” so its sustainability is questionable.

There are two key areas to watch right now:
- The previous high—if there’s no accompanying volume, any surge could just be a bull trap.
- The next major resistance—there’s a lot of trapped supply there, making it a tough barrier to break through.

My take? This price move is likely creating hype above crucial cost lines to attract retail investors, only for larger players to offload at higher prices. There’s a real possibility of a sharp drop ahead to shake out those chasing the rally.

A more reasonable expectation is: price meets resistance here or slightly higher, then pulls back to consolidate at a lower support level. Unless we see a strong breakout on heavy volume—a real price+volume surge—then we can confirm a true trend reversal.

Advice: Don’t let emotions drive your decisions. Chasing the price now isn’t worth the risk-to-reward. Either wait for a confirmed breakout with volume, or wait for a pullback to support before considering an entry. The market isn’t going anywhere, but your capital might.