Can ETH finally join the Bull Party?

ethereum price has been gradually falling after the rejection of the $4,000 resistance level.

However, things could finally change soon as the asset bounced off the $3,000 support.

Technical analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the asset has been posting highs and lows for the past few weeks after being rejected from the $4,000 resistance zone. The $3,500 level has also been lost as the market has corrected towards $3,000 and the 200-day moving average, situated around the same price mark.

However, this level has supported the largest altcoin, pushing it up to retest the $3,500 level. If the market can break above this area, a rally towards the $4,000 resistance zone would be expected.

The 4 hour chart

Looking at the 4-hour time frame, eth has been forming a descending channel for the past few weeks. Since the market has already recovered twice from the lower trend line, the price will now surely test the upper boundary of the pattern.

With the RSI also showing values ​​above 50%, momentum is in favor of a bullish continuation above the pattern and potentially towards the $4,000 area.

Sentiment analysis

By Edris Derakhshi (TradingRage)

ethereum Open Interest

ethereum price has undergone a correction over the past month and investors are wondering if a sustainable rally will soon occur or if more volatility and uncertainty could be expected.

This chart presents the open interest metric, which measures the number of open futures contracts across all exchanges. Higher values ​​are typically associated with higher volatility as the risk of rapid liquidation cascades increases.

The chart demonstrates that the open interest metric has been rising steadily over the past few weeks. This suggests that further liquidations could still be expected and that volatility has not yet subsided.

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