Here’s What ETH Needs To Do To Touch $4K Again: Ethereum Price Analysis

Ethereum price is finally showing signs of bullish continuation after retrieving a key level.

However, there is still work to be done for the market to pave the way to a new all-time high.

Technical Analysis

By Edris Derakhshi (TradingRage)

The daily chart

On the daily chart, the price has bounced off the $3,200 support level and broken above $3,500. If the asset is able to hold above this area, a rally towards the $4,000 level could be expected in the near term.

With the RSI also showing values ​​above 50%, momentum is once again bullish, increasing the likelihood of this scenario occurring.

The 4 hour chart

The 4-hour chart shows a clearer picture of recent price action. However, it also demonstrates a potentially worrying signal. Although the market has broken above the $3,500 level strongly, the bearish divergence between the recent price highs and the RSI indicator is a sign to watch.

This bearish divergence could lead to at least a pullback and a retest of the $3,500 level before further continuation in the coming days.

Chain analysis

By Edris Derakhshi (TradingRage)

Ethereum Funding Fees

Although the price of Ethereum has remained above $3,000 for the past few months, many investors were very optimistic that the market will create a new all-time high soon. However, this significant optimism has also led to a correction that slowed the asset’s upward trend.

This chart presents the Ethereum funding rates metric, which measures whether buyers or sellers in the futures market are executing their orders more aggressively. As the chart shows, funding rates showed extremely high values ​​when the price first approached the $4,000 level. However, the long liquidation cascades that followed have led to a correction and consolidation.

Meanwhile, funding rates have declined in recent weeks, indicating that sentiment in the futures market has cooled significantly. This could lead to a sustainable rally in the coming weeks if there is sufficient demand in the spot market.

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