ethereum price has recently seen a massive surge following the news of its ETF approval.
While the trend is bullish, one hurdle still remains as the asset has failed to break above the coveted $4,000 level.
Technical analysis
The daily chart
As evidenced by the daily chart, ethereum price has been correcting in a large descending channel for the past few months. However, the asset finally broke the channel and the $3,600 resistance level to the upside last week, following the ETF news.
Currently, the market is testing the $4,000 resistance zone, with the Relative Strength Index about to enter the overbought region. While the RSI values are concerning, the market could still surpass $4,000 in the near term before experiencing a possible pullback.
The 4 hour chart
On the 4-hour time frame, it is evident that the market has started to recover since breaking above the midline of the channel and the $3,000 level. While the market has been creating highs and lows recently, the RSI has been creating lower highs, pointing to a possible bearish divergence.
However, as long as the RSI remains above 50%, the momentum will favor a bullish continuation and the price could surpass the $4,000 mark.
Analysis of feelings
Financing rates
ethereum price is currently rising aggressively towards the recent high of $4,000. While it is more likely than before that eth will surpass $4,000 and move towards a new all-time high, futures traders seem pessimistic, and this is not a bad sign.
This chart shows ethereum funding rates. This metric is one of the best futures market sentiment assessment resources. Positive values indicate bullish sentiment and negative values are associated with a bearish atmosphere.
While the eth price is currently testing the $4,000 resistance level, the funding rate values are significantly lower than in March when the price returned to around $4,000. This is a good sign, indicating that the futures market is not overheated this time and that there is a lower probability of a long cascade of liquidations compared to before.
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Cryptocurrency charts by TradingView.
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