ETH Price Fails to Challenge $4,000 Resistance, But Promising Signs Appear – Ethereum Price Analysis

The price of Ethereum recently experienced a massive surge following the news of its ETF being approved.

Although the trend is bullish, a hurdle remains as the asset has failed to break the coveted $4,000 level.

Technical Analysis

By TradingRage

The daily chart

As the daily chart shows, the price of Ethereum has been correcting in a large descending channel for the past few months. However, the asset finally broke the channel and the $3,600 resistance level on the upside last week, following the ETF news.

The market is currently testing the $4,000 resistance zone, with the relative strength index poised to enter overbought territory. Although the RSI values ​​are worrisome, the market could still break above $4,000 in the short term before experiencing a possible pullback.

The 4 hour chart

In the 4-hour period, it is clear that the market has started to recover since it broke above the middle line of the channel and the $3,000 level. While the market has been making higher highs and lows recently, the RSI has been making lower highs, pointing to a possible bearish divergence.

However, as long as the RSI remains above 50%, the momentum will be in favor of a bullish continuation and the price could break above $4,000.

sentiment analysis

By TradingRage

Financing rates

The price of Ethereum is aggressively rising towards the recent high of $4,000. While it’s more likely before ETH breaks above $4,000 and moves towards a new all-time high, futures traders seem pessimistic, and that’s not a bad sign.

This chart shows Ethereum funding rates. This metric is one of the best resources for assessing futures market sentiment. Positive values ​​indicate a bullish sentiment and negative values ​​are associated with a bearish atmosphere.

While the ETH price is currently testing the $4,000 resistance level, funding rate values ​​are significantly lower than they were in March, when the price was back around $4,000. This is a good sign, indicating that the futures market has not overheated this time and there is a lower probability of a long liquidation cascade compared to before.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!

Disclaimer: The information found on CryptoPotato is that of the quoted writers. It does not represent CryptoPotato’s views on whether to buy, sell or hold any investment. We recommend that you do your own research before making any investment decisions. Use the information provided at your own risk. See disclaimer for details.

TradingView Cryptocurrency Charts.