These are the two critical levels for ETH in the short term (Ethereum Price Analysis)

Following a notable rejection at the important $4,000 price level, ethereum went through a corrective phase, experiencing a significant 25% drop. However, as the price approached the significant support of the 0.618 Fibonacci level, a bounce occurred, suggesting the possibility of an impulsive rise.

By shayan

The daily chart

A thorough analysis of the daily chart reveals a predominant bullish sentiment around ethereum, with the price briefly surpassing the critical and psychological resistance of $4,000.

However, upon reaching this crucial level, the price encountered intensified selling pressure, resulting in a significant pullback towards the substantial support zone, outlined by the price range between the 0.5 Fibonacci retracement levels ( $3,190) and 0.618 ($2,972).

As noted above, this price range attracts significant demand, leading to increased buying pressure. Consequently, the price found substantial support in this crucial region, sparking a notable rally. However, ethereum appears to be confined within a fundamental price range, bounded by the $4,000 resistance region and the critical $3,000 support zone. A breakout of this key range will likely dictate ethereum's broader outlook.

The 4 hour chart

A closer analysis of the 4-hour chart confirms the presence of sellers near the crucial $4,000 resistance region, halting ethereum's notable uptrend and triggering a significant reversal. Consequently, after a slight breach of the $4,000 threshold, the price encountered increased selling pressure, leading to a sharp decline and a notable long short squeeze event, resulting in the liquidation of numerous long positions in the perpetual market.

However, ethereum's downtrend stopped as it approached the crucial and psychological support region of $3,000, initiating a strong bullish reversal. Currently, the price faces two important milestones:

• The critical resistance region is around $4,000.
• The significant support region is around $3,300.

However, it is essential to recognize that ethereum is expected to enter a short-term consolidation stage within this key range and ultimately find support in the medium term, continuing its overall upward trajectory.

By shayan

ethereum price has seen a rapid rise in recent weeks, briefly surpassing the important $4,000 price mark. This rise has attracted a large number of speculators to the market, resulting in increased buying pressure and boosting confidence among investors.

Although ethereum has yet to reach a new all-time high, market participants maintain high expectations for further price rises, as evidenced by future market sentiment.

The chart illustrates ethereum funding rates, which provide insight into whether buyers or sellers are executing orders more aggressively overall. Positive values ​​indicate bullish sentiment, while negative values ​​suggest pessimism among market participants.

Looking at the chart, it is evident that after a significant rise in funding rate values ​​recently, there has been a notable drop at the same time as the price experiences a corrective pullback. This trend indicates that numerous long positions have been liquidated, causing a cooling phase in the futures market. Consequently, the market appears primed for another impulsive move in the medium term, with the possibility of long positions being re-established in the perpetual market.

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