Ethereum is showing strong signs with a slight recovery after testing the support level of $3.5K. The price is likely to challenge the resistance level of $4K soon; however, there may be periods of accumulation in the range of $3.5K to $4K as the market digests recent gains. 📈

On the 4-hour chart, Ethereum continues to hold its bullish strength, but the bearish divergence on the RSI indicator suggests increased selling activity and weakening bullish momentum. This could lead to sideways trading and minor corrections before continuing the uptrend.

The Ethereum derivatives market is witnessing a record increase in open interest, raising concerns about volatility and strong liquidations if the price drops suddenly.