ethereum price has violently broken through resistance levels during the recent surge. However, for the long-term trend to be considered bullish, one hurdle still needs to be overcome.
Technical analysis
By Edris
The daily chart
On the daily chart, the price has been rising steadily since recovering from the $1,550 support level and the lower boundary of the important descending channel. Notably, both the $1,750 level and the 200-day moving average, situated around the $1,800 mark, have been decisively surpassed to the upside.
Currently, the market is on track to test the upper trendline of the channel, and if a bullish break occurs, ethereum is likely to trade above $2,000 again in the near future.
The 4 hour chart
A closer examination of the 4-hour chart presents a more complex scenario. While the price managed to break and subsequently retest the $1,750 support level, it faces challenges moving forward.
Given the current turmoil in PA and the overbought signal indicated by the Relative Strength Index, the possibility of a pullback to the $1,750 level or even lower cannot be ruled out. After a relentless rally, the market may need to enter a correction or consolidation phase.
Analysis of feelings
By Edris
Financing rates
ethereum price has been rising aggressively in recent days, approaching the key $2,000 level. It is advisable to analyze the futures market sentiment and determine if this rally will sustain.
This chart represents ethereum funding rates, which is one of the most useful futures market sentiment indicators as it determines whether buyers or sellers are executing their orders more aggressively. Positive values show bullish sentiment and conversely, negative values are associated with bearish sentiment.
Evidently, funding rates have been positive for some time now, which is positive because it shows that traders are buying aggressively. However, the metric has skyrocketed tremendously in recent days.
This may indicate a probable correction or even a reversal as a result of a long cascade of liquidations, which could begin in the event of a small price pullback. Therefore, investors need to be very careful and manage their risk as a sudden drop could be on the horizon.