Ethereum is currently attempting to break through a crucial price point, potentially signaling the end of the recent market correction. The cryptocurrency has been on a downward trend since May, after failing to break the $4,000 resistance level. However, it is now testing the $3,500 level from below. If successful, Ethereum could rally towards values exceeding $4,000.

On the flip side, if the price fails to reclaim this level and also loses the long-term bullish trendline and the 200-day moving average around the $3,000 level, the outlook for Ethereum could turn bleak.

On the 4-hour chart, early signs of a bullish reversal are emerging, with the price breaking above the large descending channel pattern. While it is currently struggling to break through the $3,500 resistance level, the RSI indicates bullish momentum, suggesting the market could break higher and begin the next upward move.

Futures market sentiment metrics also support this optimistic outlook. Funding rates have been gradually decreasing since the first price rejection from the $4,000 level in March, indicating that the futures market is no longer overheated and that the price could begin another sustainable rally higher.