Ethereum
ETH Rises Towards $3.5K, Erases Much of Earlier Losses (Ethereum Price Analysis)
After a bearish correction phase, the price has now reached a crucial support zone, defined by the 100-day moving average and the 0.5-0.618 Fibonacci levels.
Given the strong demand at this stage, a medium-term bullish rebound seems likely.
By Shayan
The daily chart
A detailed look at the daily chart reveals that Ethereum has entered a significant support zone following a corrective pullback. This zone covers the price range between the 0.5 ($3,421) and 0.618 ($3,289) Fibonacci levels, coinciding with critical support at the 100-day moving average ($3,387).
This area presents potential demand, in which market participants might be inclined to open long positions.
Considering these factors, an increase in demand is expected, leading to a medium-term bullish reversal targeting the $4,000 resistance. However, if the price falls below this support, the next important line of defense for buyers will be the 200-day moving average.
The 4-hour chart
The 4-hour chart clearly shows Ethereum’s recent corrective move, with the price forming a bullish continuation flag pattern.
If the price breaks above the upper limit of this pattern, it signals a potential continuation of the uptrend. Currently, the cryptocurrency is near the lower boundary of this flag, aligning with critical support around $3.3k.
If buyers re-enter the market and demand increases, the price is expected to break above the flag’s upper limit at $3.6k, leading to a strong uptrend towards the $4k resistance.
Conversely, if sellers push the price below the $3.3K support, a decline towards the substantial support at $2.9K will likely follow. In the medium term, the price is likely to remain within the $3.3K-$3.6K range until a breakout occurs.
By Shayan
As Ethereum currently sits in a critical support region with significant potential demand, analyzing future market sentiment is essential to predict its next moves.
The following chart highlights Ethereum’s funding rate metric, which indicates whether buyers or sellers are executing orders more aggressively. Positive funding rates suggest bullish sentiment, while negative rates imply bearish sentiment.
The funding rate has recently shown a notable increase after a period of slight decline, which coincided with a corrective phase in Ethereum’s price.
This rise suggests that demand is present near the crucial $3,300 support level, which could halt further downward pressure and initiate a bullish reversal. If the funding rate continues its upward trend, it indicates that futures market sentiment is turning bullish, making a medium-term bullish reversal more likely.
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