PWSHub News

ETH Soars 12% Weekly as Bulls Start Looking at $3K (Ethereum Price Analysis)

Ethereum’s price has been rallying aggressively over the past few days. Yet, the market is approaching a strong resistance level that could determine the mid-term fate of ETH.

Technical Analysis

By TradingRage

The Daily Chart

On the daily chart, the price has been rallying since a rebound from the $2,200 zone. The $2,400 resistance level has also been broken with ease.

Currently, ETH is climbing toward the $2,700 resistance level and the higher boundary of the large ascending channel. However, the Relative Strength Index has also been rising, entering the overbought region. This might trigger a possible pullback or reversal as the price reaches the $2,700 resistance level.

Source: TradingView

The 4-Hour Chart

Looking at the 4-hour chart, the recent rally becomes much more clear. The price is approaching the $2,700 resistance level almost vertically.

This highly bullish momentum is also supported by the Relative Strength Index, which is above the 70% level. Yet, with the RSI being oversold on the daily and the 4-hour charts, the probability of a correction after testing the $2,700 level is significant.

Source: TradingView

Sentiment Analysis

By TradingRage

Ethereum Funding Rates

Ethereum’s price has been increasing rapidly over the past few weeks. Investors are becoming optimistic once again, expecting the market to make a new all-time high in the coming months. Yet, to gain an insight into potential short-term price developments, it would be beneficial to evaluate futures market sentiment.

This chart presents the Ethereum funding rates. They indicate whether the buyers or the sellers are executing their orders more aggressively on aggregate. Positive values show bullish sentiment, while negative values imply aggregate pessimism by futures traders.

As the chart shows, the price drop a few weeks ago has decreased the funding rates. However, they are once again rising as the price rallies. While being a positive signal, high funding rates are also worrying, as they point to the increased probability of a long-liquidation cascade and, consequently, sudden price drops.

Source: CryptoQuant

Source: cryptopotato.com

Related stories
2 weeks ago - According to a recent report, cryptocurrency products experienced an influx of $1.1 billion last week, primarily driven by Bitcoin (BTC), which accounted for 98% of the total inflows. Ethereum (ETH) and Cardano also observed a surge in...
2 weeks ago - EigenLayer’s TVL almost doubled in the past 24 hours from $2.16 billion to $3.84 billion, according to information available on DeFiLlama.
1 week ago - Ethereum (ETH) is showcasing a major uptick in several aspects of its network, pushing a revival in its price action. ETH is changing hands for $2,825.07, up by 0.88% in 24 hours and by more than 14% in the past week. With the resurgence, there is now a general assumption that the price of ETH may be on its way toward the $3,500 price mark. ⪮
1 week ago - The top crypto prices witnessed a rebound as Bitcoin attained the $52,000 while Ethereum neared $2,900, however, Cardano defied the trend.
Other stories
14 minutes ago - Ethereum price climbed to a new multi-month high above $3,200. ETH is consolidating while Bitcoin is gaining pace above the $55,000 resistance.
22 minutes ago - The withdrawal is a dramatic retreat for the world’s fifth-largest crypto exchange, which had hoped to win customers in Hong Kong after exiting the mainland market.
24 minutes ago - Maker is predicted to decrease -11.63% in the next 5 days and hit a price target of $1,857.65 per MKR. Check out today's Maker price prediction to learn why.
54 minutes ago - As new information emerges that could potentially help identify the creator of Bitcoin, speculation on the matter is being met with backlash on social media.
1 hour ago - Bitcoin is swimming in territory not seen since its all-time high in November 2021, even as holders cash in.
1 hour ago - Ethereum has left Bitcoin in the dust with its latest rally towards $3,100. Here's whether this run is sustainable based off futures market.