The cryptocurrency market has seen a strong uptrend following President Trump's election, with Ethereum experiencing a significant surge. However, the market now appears ready for a correction phase to allow consolidation before further gains.
Technical Analysis
The influx of new participants and investors on Ethereum's daily chart has led to an impulsive uptrend, driving its price above the 100-day and 200-day moving averages. This momentum indicates a bullish shift as the market flushes out short positions.
The Daily Chart
Ethereum is now approaching a crucial resistance region around $3.6K, a level with significant supply and potential profit-taking, suggesting a likely temporary correction to ease buying pressure.
The 4-Hour Chart
The recent surge began at the bearish flag's lower boundary near $2.4K. An influx of buying pressure led to a breakout above the flag's upper boundary, pushing Ethereum past the critical $3K mark.
Onchain Analysis
Ethereum’s recent surge to a new yearly high has renewed optimism among market participants. Examining the funding rates for ETH futures, it shows a positive sentiment remained in recent weeks.
The current technical setup suggests that Ethereum may pause its bullish momentum in the short term. A correction toward $3K would support a healthier continuation of the uptrend, giving the market time to recalibrate before attempting to break higher.
