ethereum price action has been very bullish in recent weeks, breaking several resistance levels. However, the price has reached a key level that could cause problems.
Technical analysis
The daily chart
On the daily chart, the price has been rising after bouncing from the $2200 support level a month ago. Both the $2,400 and $2,700 resistance levels have been easily broken and the price has also broken through the large ascending channel. The $3,000 resistance level is currently being tested and the market is failing to move higher. eth price could fall towards the $2,700 level in case of a correction before rising further.
The 4 hour chart
Looking at the 4-hour time frame, the price broke the ascending channel to the upside, retested the upper boundary and rose towards the $3,000 level. However, this resistance level has rejected the price lower, preventing a further rally.
Meanwhile, the relative strength index is still showing values above 50%, indicating that a bullish continuation could still be likely. However, the price could retest the broken boundary of the large channel before doing so.
Analysis of feelings
ethereum Funding Rates
The price of ethereum has been rising aggressively over the past few weeks. This has generated significant optimism among market participants regarding future price action as they expect eth to reach a new all-time high soon.
This chart shows ethereum funding rates. Funding rates show whether sellers or buyers are executing more aggressive orders (market orders) together. Positive values are associated with bullish sentiment, while negative values indicate bearish expectations by futures traders.
It is evident that funding rates have increased significantly during the recent uptrend. While this increase is logical due to the bullish market structure, it can also cause problems. The reasoning behind this claim is that these high values show a higher probability of long liquidation cascades, which could lead to sudden price drops.
The post ethereum Price Analysis: Will $3,000 Prove Too Big a Hurdle for the Short Term? appeared first on CryptoPotato.
