Ethereum
Is the Ethereum bull market back or is another drop below $3,000 imminent? (ETH Price Analysis)
Ethereum price is yet to continue its uptrend following a rejection from the $4,000 resistance level. But the bulls are now showing signs of strength, perhaps heralding a more considerable recovery.
Technical analysis
By TradingRage
The daily chart
As seen in the daily chart, Ethereum price has been experiencing lower highs and lower lows in a descending channel since it failed to surpass the $4,000 resistance level.
Still, the cryptocurrency is climbing back above the $3,000 level and the channel’s midline. If the market manages to return to these levels, we can expect a breakout above the channel and a continuation towards $4,000 or even higher prices.
The 4-hour chart
The 4-hour chart offers a much clearer picture of recent price action. The market has barely crossed the $3,000 resistance zone and is currently testing the middle line of the descending channel.
With the RSI showing values above 50%, ETH is likely to breach the level and potentially continue towards the $3,600 resistance zone. In this case, market participants can be optimistic about the start of a new bullish wave.
Sentiment analysis
By TradingRage
Ethereum Funding Rate
Following the recent decline in the price of Ethereum, many futures traders have liquidated or reversed their long positions. This may be a good sign, as the futures market appears to have cooled off.
This chart shows the Ethereum funding rate metric, which measures whether buyers or sellers are executing their futures orders more aggressively (using market orders). Positive values indicate bullish sentiment, while negative values indicate bearish expectations.
It is evident that financing rates have dropped significantly compared to a few months ago. Low but positive funding rates can be interpreted as a bullish signal because they show that even though the futures market is no longer overheated, demand is still there and prices could rise soon.
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