Ethereum has approached the critical $4K resistance level again after recovering from the $3.5K support. Let's delve deeper into the market developments.
Technical Analysis
Ethereum recently encountered resistance at the pivotal $4K level, leading to a decline to the crucial $3.5K support. This zone proved to be a key demand area, attracting significant buying interest and driving the price back toward $4K. Buyers are now attempting to reclaim this psychological barrier, potentially setting the stage for a sustained rally. However, failure to break through could mean continued consolidation between $3.5K and $4K.
The Daily Chart
On the 4-hour chart, Ethereum moves within an ascending channel. After rejection at the upper boundary near $4K, the price retraced sharply, testing the lower trendline around $3.5K support. This critical juncture sparked fresh buying activity resulting in a bullish rebound back towards $4K. The $4K level remains significant resistance, and breaking above it could initiate a fresh rally.
Onchain Analysis
Onchain analysis reveals that the futures market significantly impacts price trends and volatility. Funding rates are a key indicator, providing insights into market sentiment. The recent bullish rebound from the $3.5K support was accompanied by a notable spike in funding rates, reflecting growing interest in long positions on Ethereum.
Ethereum is on the verge of potentially breaking the $4K level, which could pave the way to its all-time highs.
