ethereum price has recently broken through several resistance levels. It is currently rising vertically and market participants are optimistic that a new bull market has begun.
Technical analysis
The daily chart
The daily chart shows that since the price broke above the 200-day moving average around the $1,800 level and the large bull flag pattern, the market structure has turned bullish once again. The resistance levels of $2,000 and $2,150 have been broken and the market is currently targeting the next resistance zone at the $2,500 price mark.
However, the Relative Strength Index is entering the overbought region and could be close to a short-term pullback or consolidation.
The 4 hour chart
The 4-hour chart shows more details about ethereum's recent price action. eth has been forming a rising wedge pattern around the $2,000 mark but has broken through its upper limit with ease. Consequently, the market has risen aggressively and is currently trading above $2,200.
However, with the Relative Strength Index showing a clear overbought signal and the latest 4-hour candlesticks demonstrating weakness in the bullish momentum, a pullback towards the $2,150 support level is expected in the coming weeks.
Analysis of feelings
Financing rates
ethereum price has risen rapidly in recent weeks, surpassing the $2,000 level. In the current situation, analyzing futures market metrics can provide beneficial information for investors.
This chart shows funding rates, one of the most useful metrics for assessing futures market sentiment. Positive financing values indicate that longs are more aggressive. In contrast, negative values are associated with greater dominance by short sellers.
As the chart shows, funding rates are generating very positive values with the recent price increase. These values are similar levels seen previously during the all-time high range of $69,000. Therefore, investors should be cautious as a pullback or even reversal seems very likely in the near term.
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Cryptocurrency charts by TradingView.
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