ethereum recently found stability in the $3K support region after facing substantial selling pressure, leading to a consolidation phase.
A golden cross on the daily chart further indicates the potential for a medium-term bullish bounce, suggesting optimism in the market's prospects.
Technical analysis
By shayan
The daily chart
ethereum price action has been marked by increased volatility, particularly after its rejection at the $4K resistance level. This drop pushed the asset below the crucial $3,500 threshold and ultimately found strong support in the $3,000 zone. This level has considerable importance due to the confluence of demand and the alignment of the 100-day and 200-day moving averages.
On the other hand, the appearance of a golden cross, where the 100-day moving average has crossed above the 200-day moving average, further emphasizes a possible shift towards bullish sentiment. However, ethereum remains confined below the $3,500 resistance, requiring a decisive breakout to catalyze a new uptrend. A successful breakout could set the stage for a new rally.
The 4 hour chart
On the 4-hour time frame, ethereum's decline from the ascending price channel culminated in a test of the $3K region. Not only is this zone psychologically significant, but it also aligns with the 0.5 ($3,200) and 0.618 ($3,000) Fibonacci retracement levels, reinforcing it as a solid support line.
The current price action suggests a possible build-up of buying interest, and this region serves as a critical line of defense for the bulls. If this support holds, ethereum is likely to embark on a fresh bullish surge, with targets set to reclaim the $3,500 resistance. Conversely, a sudden drop below the $3,000 threshold could trigger a cascade of liquidations, pushing the price towards the $2,500 support, marking a deeper pullback.
Chain analysis
By shayan
After ethereum's major correction to the $3,000 level, the futures market has begun a cooling-off period, raising expectations of a possible bullish bounce. The funding rates metric, a reliable indicator of futures market sentiment, offers valuable insight into this development.
ethereum's consolidation above the critical $3,000 support level has allowed bullish participants to re-enter the market. This renewed demand is reflected in rising funding rates, indicating that more traders are opening long positions. This behavior usually indicates increasing confidence among market participants, who anticipate a reversal of the current trend.
The recent rise in financing rates suggests an influx of buyers that, if sustained, could fuel a substantial bullish rally. This renewed buying pressure can potentially push ethereum towards the crucial $4,000 resistance in the short to medium term.
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Cryptocurrency charts by TradingView.
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