Here's what ETH has to do to reach $4K again: Ethereum Price Analysis

ethereum price finally shows signs of bullish continuation after reclaiming a key level.

However, there is still work to be done for the market to pave the way to a new all-time high.

Technical analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the price recovered from the $3200 support level and surpassed $3500 to the upside. If the asset is able to sustain above this zone, a rally towards the $4,000 level could be expected in the near term.

Since the RSI is also showing values ​​above 50%, the momentum is once again bullish, increasing the probability of this scenario occurring.

The 4 hour chart

The 4-hour chart shows a clearer picture of the recent price action. However, it also demonstrates a potentially worrying sign. While the market has strongly broken above the $3,500 level, the bearish divergence between the recent price highs and the RSI indicator is a sign to watch out for.

This bearish divergence could lead to at least a pullback and retest of the $3,500 level before any upside continuation in the coming days.

Chain analysis

By Edris Derakhshi (TradingRage)

ethereum Funding Rates

While the price of ethereum has remained above the $3,000 mark in recent months, many investors were very optimistic that the market will soon create a new all-time high. However, this significant optimism has also caused a correction that stopped the asset's upward trend.

This chart features the ethereum funding rates metric, which measures whether buyers or sellers in the futures market are executing their orders more aggressively. As the chart presents, the funding rates showed extremely high values ​​when the price first approached the $4,000 level. However, the long cascades of liquidations that followed have led to a correction and consolidation.

Meanwhile, funding rates have declined in recent weeks, indicating that futures market sentiment has cooled significantly. This could lead to a sustainable rally in the coming weeks if there is enough demand in the spot market.

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