ethereum price has risen rapidly over the past few weeks, breaking through several resistance levels. However, the price has reached a significant level that could sustain the market for a while.
Technical analysis
The daily chart
On the daily chart, the price has been rising steadily, recording highs and lows. The market has left the 200-day moving average well behind, a behavior typically seen during cryptocurrency bull markets.
Currently, eth price is trying to break through the $4,000 resistance level after failing to do so last week.
If the breakout occurs, eth is likely to hit a new all-time high. However, judging by the huge overbought signals on the RSI, a pullback seems quite likely in the near term.
The 4 hour chart
If we look at the 4-hour time frame, it is evident that the price has been consolidating below the $4,000 level for a while. However, the bullish momentum has apparently picked up again and eth is on the verge of surpassing the $4,000 resistance zone.
The relative strength index also shows values above 50%, but it is not yet overbought in this period. Therefore, the market could still rise further before an eventual correction.
Analysis of feelings
ethereum Funding Rate
While the price of ethereum has yet to reach a new all-time high, market participants expect the price to rise much higher. This optimistic behavior can be easily observed in the future market sentiment.
This chart presents ethereum funding rates, which indicate whether buyers or sellers are executing their orders more aggressively overall. Positive values indicate bullish sentiment, while negative values indicate pessimism on the part of market participants.
The chart demonstrates that funding rates have shown extremely high values recently, even higher than during the last all-time high. While this added buying pressure is not inherently bad, it can lead to a potential cascade of long-term liquidations that could lead to short-term price declines.
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Cryptocurrency charts by TradingView.
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