Ethereum recently found stability at the $3,000 support region after facing substantial selling pressure, leading to a consolidation phase. A notable golden cross on the daily chart suggests the potential for a mid-term bullish rebound, signaling optimism in the market’s outlook.
Technical Analysis
By Shayan
The Daily Chart
Ethereum’s price action has been marked by increased volatility, particularly following its rejection at the $4,000 resistance level. This decline pushed the asset below the crucial $3,500 threshold, ultimately finding robust support at the $3,000 zone. This level holds considerable significance due to the confluence of demand and the alignment of the 100-day and 200-day moving averages.
Moreover, the emergence of a golden cross, where the 100-day moving average has crossed above the 200-day moving average, further underscores a potential shift towards bullish sentiment. Nevertheless, Ethereum remains confined below the $3,500 resistance, necessitating a decisive breakout to catalyze a new upward trend. A successful breach could set the stage for a renewed rally.
The 4-Hour Chart
On the 4-hour timeframe, Ethereum’s decline from the ascending price channel culminated in a test of the $3,000 region. This zone is not only psychologically significant but also aligns with the 0.5 ($3,200) and 0.618 ($3,000) Fibonacci retracement levels, reinforcing it as a robust support line.
Current price action suggests a potential buildup of buying interest, with this region serving as a critical defense line for bulls. If this support holds, Ethereum is likely to embark on a fresh bullish surge, targeting a reclaim of the $3,500 resistance. Conversely, a sudden breakdown below the $3,000 threshold could trigger a cascade of liquidations, driving the price toward the $2,500 support, marking a deeper retracement.
Onchain Analysis
By Shayan
Following Ethereum’s significant correction to the $3,000 level, the futures market has entered a cooling-off period, raising expectations for a potential bullish rebound. The funding rates metric, a trusted proxy for futures market sentiment, offers valuable insights into this development.
Ethereum’s consolidation above the critical $3,000 support level has allowed bullish participants to re-enter the market. This renewed demand is reflected in the uptick in funding rates, indicating that more traders are opening long positions. Such behavior often signifies growing confidence among market participants as they anticipate a reversal in the current trend.
The recent surge in funding rates hints at an influx of buyers, which, if sustained, could drive a substantial bullish rebound. This renewed buying pressure can potentially push Ethereum toward the crucial $4,000 resistance in the short to mid-term.
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