Ethereum is showing signs of bullish continuation after reaching a key level. However, more work is required to achieve a new all-time high.
The Daily Chart
On the daily chart, the price has rebounded from the $3,200 support level and moved above $3,500. If the asset holds above this area, a rally towards the $4,000 level is expected in the short term. The RSI indicator also shows values above 50%, enhancing the likelihood of this scenario.
The 4-Hour Chart
The 4-hour chart presents a clearer view of recent price action but also highlights a potential bearish signal. While the market broke through the $3,500 level, the bearish divergence between recent price highs and the RSI should be considered. This divergence may lead to a pullback and retest of the $3,500 level before any further ascent.
On-Chain Analysis
While Ethereum's price has remained above $3,000 in recent months, significant optimism among investors led to a correction and consolidation. The chart shows that funding rates have decreased, indicating a cooling sentiment in the futures market. This could result in a sustainable rally with adequate spot market demand.
Ethereum is on track to reach $4,000 if it maintains key levels and the market shows adequate support.
