ethereum price is yet to continue its uptrend following a rejection of the $4,000 resistance level. But the bulls are now showing signs of strength, perhaps staging a more sizable rally.
Technical analysis
The daily chart
As the daily chart shows, ethereum price has been recording lower highs and lower lows within a descending channel since failing to break above the $4,000 resistance level.
However, the cryptocurrency is rallying back above the $3,000 level and the midline of the channel. If the market successfully recovers to these levels, a break above the channel and a continuation towards $4,000 and even higher prices can be expected.
The 4 hour chart
The 4-hour chart offers a much clearer picture of the recent price action. The market has barely broken through the $3,000 resistance zone and is currently testing the midline of the descending channel.
With the RSI showing values above 50%, eth is likely to break above the level and potentially continue towards the $3,600 resistance area. In this case, market participants may be optimistic that a new bullish wave will begin soon.
Analysis of feelings
ethereum Funding Rates
Following the recent drop in ethereum price, many futures traders have been liquidated or unwound their long positions. This may be a good sign, as the futures market has apparently cooled down.
This chart shows ethereum's funding rates metric, which measures whether buyers or sellers are executing their futures orders more aggressively (using market orders). Positive values point to bullish sentiment, while negative values show bearish expectations.
It is evident that financing rates have decreased significantly compared to a couple of months ago. Low but positive funding rates can be interpreted as a bullish signal as they show that while the futures market is no longer overheated, demand is still there and the price may soon rise higher.
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Cryptocurrency charts by TradingView.
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