After the Flushout, is ETH about to hit $4K? (Ethereum Price Analysis)

After a period of increased buying activity and increased bullish momentum, ethereum has successfully reclaimed a crucial resistance zone, particularly the previous major yearly high of $3,600.

This breakout, if confirmed by a retest, sets the stage for eth to potentially set a new all-time high in the near future.

By shayan

The weekly chart

An in-depth analysis of the weekly chart reveals significant bullish sentiment surrounding ethereum, as evidenced by a substantial and impulsive upward move surpassing the critical resistance represented by the previous yearly high of $3,600.

This price action reflects strong interest from market participants in eth, resulting in increased demand.

In case the surpassed level is successfully retested, ethereum price is expected to continue its upward trajectory, targeting the critical all-time high of $4,868.

Despite the bullish outlook, ethereum may find significant support around the $3.6K threshold, with additional support levels lying within the 0.5 ($3066) and 0.618 ($2870) Fibonacci levels. ), which serve as potential zones for corrective movements.

The 4 hour chart

A closer analysis of the 4-hour chart confirms ethereum's overall bullish sentiment and rising market confidence, driving the price to its highest level since April 2022. This rise, accompanied by increased market volatility , reflects substantial buying interest aimed at surpassing the notable resistance level of its ATH at $4.8K.

However, following a rejection at the important resistance at $3,600, ethereum found support within the critical regions marked by the 0.5 and 0.618 Fibonacci levels, triggering an immediate reversal. However, the price exceeded $3.6 thousand, driven by the prevailing demand in the market, indicating the dominance of buyers in the market.

Currently, eth is approaching a major psychological resistance zone near the $4,000 threshold. Given the strength of this price range and the rapid rise of the current bullish rally, greater volatility and fluctuations are expected.

Despite possible corrections in the short and medium term, the overall sentiment remains positive, with ethereum poised for further upside potential.

By shayan

ethereum's recent rise highlights a rise in investor confidence and increased buying activity. An important indicator that reflects market dynamics is ethereum funding rates, which measure the aggressiveness of trading in the futures market. Positive rates indicate a bullish outlook, while negative rates indicate a bearish sentiment among traders.

In particular, this metric has seen a significant rally, reaching levels reminiscent of late 2020, when ethereum was primed for a strong bullish rally towards its all-time high. This rise in funding rates indicates strong bullish sentiment among futures traders, which could lead to a sustained uptrend.

However, while rising funding rates often accompany bullish market sentiment, excessively high values ​​can be dangerous.

Elevated rates increase the risk of lengthy liquidation cascades, which may result in increased market volatility and unexpected corrective moves. Therefore, traders should closely monitor funding rates amid ethereum's bullish momentum and effectively manage risk to assess market conditions and anticipate potential price fluctuations.

<!– ai CONTENT END 1 –>