NEWSLETTER
ethereum price is currently trying to penetrate a key level and if it succeeds, the recent correction could finally end.
Technical analysis
The daily chart
As the daily chart shows, the price of ethereum has been falling since it was rejected from the $4,000 resistance level in May.
The market has since fallen below the $3,500 level but is currently testing it from below. If the price is able to reclaim this level, the cryptocurrency could eventually rally towards values above $4,000.
On the other hand, in case of rejection, if the price also loses the long-term uptrend line and the 200-day moving average located around the $3,000 level, things can get very ugly for eth.
The 4 hour chart
Looking at the 4-hour time frame, some early bullish reversal signals are appearing. The price has just broken out of the large descending channel pattern.
However, it is currently struggling to break above the $3,500 resistance level.
However, since the RSI indicates that the momentum is bullish, the market could break out to the upside and begin the next upward move. However, this scenario would fail if the price fell back into the channel.
Analysis of feelings
Financing rates
To complement the technical analysis above, it would be useful to look at the sentiment metrics of the futures market. This chart shows the funding rate metric, one of the key sentiment parameters. It shows whether buyers or sellers are executing their futures orders more aggressively.
As the chart shows, funding rates have been gradually declining since the price first rejected the $4,000 level in March. The current funding rate values indicate that the futures market is no longer overheated and the price could finally start another sustainable rally higher.
ethereum Price Analysis: eth Price Targets $3,500 as Hopes for a Bottom Rise appeared first on CryptoPotato.
