After weeks of declines, ethereum (eth) appears to have begun its recovery, closely following bitcoin's upward movement. As of today, eth has regained the $3,300 level, reflecting a 7.5% increase over the past week.
This rally has sparked renewed interest among market participants, who are closely watching ethereum's next moves, particularly in light of improving market sentiment and key metrics indicating the potential for further gains.
There is renewed optimism in the market, is it heading towards $3,500?
ShayanBTC, contributor to the CryptoQuant QuickTake platform recently <a target="_blank" href="https://cryptoquant.com/insights/quicktake/678e04e99b745157281f45d8-ethereum-Eyes-35K-Breakout-Amid-Renewed-Futures-Market-Optimism” target=”_blank”>highlighted that ethereum is consolidating within a range of $3,200 to $3,500. According to Shayan, market dynamics in this price range suggest that a bullish breakout could be on the horizon.
While funding rates (a critical indicator of market sentiment) initially declined, they have begun to rise again, indicating a renewed appetite for long positions and increased confidence in ethereum's performance in the near term.
<img src="https://technicalterrence.com/wp-content/uploads/2025/01/Ethereum-Futures-Market-Shows-Renewed-Optimism-Is-a-Break-Above.png" alt="ethereum funding rates.” />
As ethereum approaches the $3,500 resistance level, the supply and demand dynamics at this price are attracting a lot of attention. The presence of notable supply in this range emphasizes the importance of sustained bullish momentum for a breakout.
Shayan has noted that the funding rate metric will be a key indicator to watch. If funding rates continue to rise, it could mean greater market optimism, increasing the likelihood of ethereum breaking above $3.5000.
According to Shayan, for ethereum to overcome this critical resistance, the futures market must maintain and strengthen its bullish sentiment. This will require not only a continued increase in funding rates, but also an overall increase in long positions and trading activity.
The interaction between these factors will determine whether ethereum can achieve a decisive breakout, making the next market action critical for traders and investors.
ethereum Market Performance and Outlook
So far, ethereum is currently trading at $3,346; At the time of writing, the asset recorded an increase of 1.3% in the last day. Meanwhile, on the weekly time frame, ethereum has risen over 10% in price, suggesting consistent upward momentum over the past 7 days.
However, despite this increase in eth price, the asset is still approximately a 31.3% decline away from its all-time high (ATH) of $4,878 recorded in November 2021.
x/pg9bKuX1/” alt=”ethereum (eth) Price Chart on TradingView” />
Interestingly, despite this, some analysts are still quite bullish on ethereum, especially with the new pro-crypto administration. A renowned crypto analyst on
<blockquote class="twitter-tweet”>
Trump will send ethereum to $5,000.
It has already bought 72 million dollars in the last 48 hours. pic.twitter.com/PwzYj5byhC
— TraderPA (@Trader1PA) <a target="_blank" href="https://twitter.com/Trader1PA/status/1881316244218896721?ref_src=twsrc%5Etfw” target=”_blank”>January 20, 2025
Featured image created with DALL-E, TradingView chart
<script async src="https://platform.twitter.com/widgets.js” charset=”utf-8″>