Ethereum has been on a notable upswing recently, surpassing key resistance levels and breaking through the significant psychological barrier of $3,000. This surge indicates a prevailing bullish sentiment in the market, with investors setting their sights on the crucial yearly swing high of $3,600 as the next target.
Taking a closer look at the daily chart, Ethereum’s impressive rally is evident after bouncing off the 100-day moving average and reclaiming the $2,800 resistance zone. The current price action reflects a strong bullish sentiment, with expectations of Ethereum reaching a new all-time high in 2024. However, there is a cautious note regarding a potential expanded bearish divergence between the price and the RSI indicator, indicating a possible short to mid-term correction or consolidation before the next significant move.
On the 4-hour chart, a compelling bullish reversal can be observed near the multi-month ascending trendline, pushing Ethereum to its highest level since April 2022. This surge, combined with a successful pullback above the crucial prior swing high, suggests strong buying interest with the goal of driving Ethereum towards the significant resistance region of $3,600. Despite the recent price action and market sentiment, the prevailing bullish trend appears likely to be sustainable, although periodic downward corrections are expected within the trend.
Key support levels to keep an eye on include:
– The $2,800 region
– The $2,500 region
– The $2,100 region
– The dynamic ascending trendline
While short to mid-term corrections may introduce volatility, the overall outlook for Ethereum remains positive, with the potential for further gains in the future.
Ethereum’s funding rates have seen a strong uptrend in recent weeks, generating optimism among investors anticipating a retest of its all-time high. Funding rates reflect the aggressiveness of market orders executed by buyers and sellers, with positive values indicating bullish sentiment and negative values suggesting bearish expectations among futures traders.
Following a consolidation correction in price action accompanied by a decline in funding rates, both metrics have experienced significant surges. This trend, if sustained, points towards an extended bullish trajectory for Ethereum. However, it is essential to note that excessively high funding rates can pose challenges. Elevated rates increase the risk of long liquidation cascades, potentially resulting in sharp price declines. Therefore, careful monitoring of funding rates is crucial to navigate Ethereum’s bullish momentum effectively.