Is the Ethereum bull market back or is another dip below $3,000 imminent? (ETH Price Analysis)

Ethereum price has yet to continue its uptrend after a rejection of the $4,000 resistance level. But now the bulls are showing signs of strength, perhaps leading a more substantial recovery.

Technical Analysis

By TradingRage

The daily chart

As the daily chart shows, Ethereum price has been making lower highs and lower lows within a descending channel since it failed to break above the $4,000 resistance level.

However, the cryptocurrency is once again rising above the $3,000 level and the middle line of the channel. If the market successfully recovers to these levels, a break above the channel and a continuation towards $4,000 and even higher prices can be expected.

Source: TradingView The 4-hour chart

The 4-hour chart provides a much clearer picture of recent price action. The market has barely broken the $3,000 resistance zone and is currently testing the median line of the descending channel.

With the RSI showing values ​​above 50%, ETH is likely to break above the level and potentially continue towards the $3,600 resistance zone. In this case, market participants can be optimistic that a new bullish wave will soon begin.

Source: TradingView Sentiment Analysis

By TradingRage

Ethereum Funding Fees

Following the recent drop in the price of Ethereum, many futures traders have liquidated or reversed their long positions. This may be a good sign as the futures market appears to have cooled.

This chart shows the Ethereum funding rates metric, which measures whether buyers or sellers are executing their futures orders more aggressively (using market orders). Positive values ​​point to bullish sentiment, while negative values ​​show low expectations.

It is clear that financing rates have dropped significantly compared to a couple of months ago. Low but positive funding rates can be interpreted as a bullish signal as they show that while the futures market is no longer overheated, demand is still there and the price may soon rise.

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