ETH Price Fails to Challenge $4K Resistance, But Promising Signs Emerge: Ethereum Price Analysis

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

By Commercial fury

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

By Commercial fury

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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