Ethereum, one of the leading altcoins, is focused on maintaining its position within a rising channel on its price chart. Recently, Ethereum tested the critical support zone at $4,200.
Key Support Level at $4,200
Analysis indicates that Ethereum is moving within an ascending channel on the daily chart. After a pullback at the upper limit of the channel, the price retracted to the $4,200 support, which aligns with both the daily order block and the channel's midpoint.
Short-Term Signals and Market Pressure
On the four-hour chart, it is observed that Ethereum broke below the sharply rising trend line yet maintained the middle channel support. Currently, the price oscillates between the $4,200 support and the $4,600 resistance. Significant selling pressure is reflected by pullbacks from $4,600.
Current Market Conditions and Outlook
According to blockchain data, funding rates in the futures markets remain positive, indicating a dominance of long positions. However, the funding rate being at lower levels than past cycles indicates a restrained appetite for upward movement compared to previous cycles.
The current situation for Ethereum displays uncertainty. The key support level at $4,200 must be maintained, while surpassing the resistance at $4,600 may pave the way for new highs.
