Ethereum rebounds from $3,200 support and breaks $3,500, signaling bullish momentum.

Bearish RSI divergence suggests a pullback before targeting $4,000 and higher levels.

Cooling funding rates hint at a healthier market and potential rally to $6K-$11K.

Ethereum—ETH, is poised for a major upward move. The price rebounded from $3,200 and broke past $3,500 with strength. This breakout suggests growing momentum, especially with the RSI showing values above 50%. A rally toward $4,000 seems likely in the short term. If the trend continues, Ethereum could target $6,000 to $11,000 in the coming months. The stage is set for a potential game-changing rally, attracting both traders and long-term investors.

https://twitter.com/MikybullCrypto/status/1876139719823958062 Daily and 4-Hour Charts Highlight Key Trends

The daily chart reveals strong buying support at $3,200. Buyers drove the price above $3,500, marking a significant shift in market sentiment. Holding above this level would open the door for further gains toward $4,000. The RSI adds to this bullish outlook, signaling renewed strength and control from buyers.

On the 4-hour chart, the picture becomes more nuanced. The strong move above $3,500 shows clear bullish pressure. However, a bearish divergence between the price highs and RSI suggests caution. This divergence often indicates a possible pullback before continued gains. A retest of $3,500 could occur, creating an opportunity for traders to join the momentum.

Funding Rates Suggest a Healthier Rally Ahead

Ethereum funding rates provide crucial insights into market behavior. Earlier this year, high funding rates near $4,000 created excessive optimism. This led to sharp corrections and weeks of consolidation. Recently, funding rates have declined, showing a more balanced market sentiment.

This cooling phase reduces the risk of sudden liquidations and sharp drops. If spot market demand increases, Ethereum could break resistance levels and climb toward higher targets. The current setup positions Ethereum for a significant move.

Strong support, cooling sentiment, and renewed momentum create the perfect conditions for a rally. Reaching $6,000 to $11,000 now feels less like speculation and more like an achievable goal. Investors may be witnessing the start of a defining moment for Ethereum and the broader altcoin market.

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