Ethereum has found stability at the $3,000 support region after facing significant selling pressure, leading to a consolidation phase. A golden cross on the daily chart suggests a potential mid-term bullish rebound, indicating optimism in the market’s outlook.
Technical Analysis: A Shift Towards Bullish Sentiment
Ethereum’s price action has been marked by increased volatility, particularly after its rejection at the $4,000 resistance level. The asset has found strong support at the $3,000 zone, which holds considerable significance due to the confluence of demand and the alignment of the 100-day and 200-day moving averages. The emergence of a golden cross, where the 100-day MA has crossed above the 200-day MA, further emphasizes a potential shift towards bullish sentiment.
4-Hour Chart: Potential Buildup of Buying Interest
On the 4-hour timeframe, Ethereum’s decline from the ascending price channel culminated in a test of the $3,000 region. This zone is not only psychologically significant but also aligns with the 0.5 ($3.2K) and 0.618 ($3K) Fibonacci retracement levels, reinforcing it as a robust support line. Current price action suggests a potential buildup of buying interest, with this region serving as a critical defense line for bulls.
Onchain Analysis: Futures Market Sentiment Shifts
After Ethereum’s significant correction to the $3,000 level, the futures market has begun a cooling-off period, raising expectations for a potential bullish rebound. The funding rates metric, a trusted proxy for futures market sentiment, offers valuable insights into this development. Ethereum’s consolidation above the critical $3,000 support level has allowed bullish participants to re-enter the market, reflected in the uptick in funding rates. This renewed demand signals growing confidence among market participants as they anticipate a reversal in the current trend.
Potential Bullish Rebound on the Horizon
The recent spike in funding rates suggests an influx of buyers, which, if sustained, could drive a substantial bullish rebound. This renewed buying pressure can potentially push Ethereum toward the crucial $4,000 resistance in the short to mid-term.
Source: Cryptopotato.com
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