ethereum price action indicates a temporary consolidation phase following its rejection near the critical $3,500 resistance zone.
A pullback towards $3,000 is forming (aligned with the 200-day moving average), setting the stage for a possible bullish continuation in the medium term.
ethereum recently experienced further bullish momentum, surpassing the critical $3,000 resistance zone, which now serves as solid support.
Staying above the 100-day and 200-day moving averages further strengthens the bullish outlook. However, the price faced a rejection near the $3.5k resistance region, resulting in a corrective pullback towards the 200-day MA around $3k.
This support area is crucial for ethereum's medium-term prospects. A successful completion of the pullback could pave the way for further price increases, targeting higher resistance levels.
The RSI reading of 62.26 indicates that ethereum still has room to grow before entering overbought territory. The $3,500 resistance zone aligns with previous highs and supply regions, making it a critical threshold for the continuation of the uptrend.
On the 4-hour chart, ethereum's bullish momentum remains evident through its series of higher highs and higher lows. Following its impulsive rally, the price was rejected from the $3,500 resistance zone and is now consolidating near the $3,000 level.
This range aligns with the flag's broken trendline, suggesting that the current pullback is forming as a healthy correction.
The RSI reading of 51.20 shows neutral momentum, indicating that ethereum could consolidate further or attempt a fresh rise towards the $3,500 level.
A break above this resistance zone would reinforce bullish sentiment and increase the likelihood of ethereum hitting new highs. However, failure to hold the $3,000 support could indicate short-term weakness, forcing traders to closely monitor the price action for further signals.
With ethereum experiencing a pullback phase, futures market sentiment offers valuable information on possible short-term fluctuations.
ethereum futures funding rates have spiked significantly following the rise above $3,000. This indicates increased buying activity in the futures market, reflecting strong demand and optimism among traders.
Even though ethereum reached new highs, current funding rate levels remain significantly lower than those seen the last time eth traded in this price range at the beginning of the year. This discrepancy suggests that, while demand is strong, the futures market is not yet approaching overbought or overly speculative conditions.
As a result, current sentiment supports ethereum's potential to continue its upward trajectory in the coming months.
