[Ethereum consolidates at $3,000, bulls looking to make a move soon]
Ethereum price encountered resistance on the breakout of the key $3,000 support area, with the price trading within a narrow and critical range. However, a new bull run is expected over the medium term, driven by emerging demand.
Ethereum price was capped in a tight range as it struggled to break above the key $3,000 support zone. This important range consists of the Fibonacci levels of 0.5 ($3,133) and 0.618 ($2,906) closely aligned with the 100-day moving average, indicating substantial demand around this threshold. Recent price action suggests a possible increase in demand, signaling a possible bull rally. A break above this support zone would place next support at $2,500 with the 200-day moving average at $2,600.
Taking a closer look at the four-hour chart, Ethereum is within a multi-week price range, between key support at $3,000 and significant resistance at $3,200. Prices are currently moving sideways within this range, suggesting a tug-of-war between sellers and buyers. If sellers manage to break the $3,000 support, a bear trend could form in the medium term. However, based on recent price movements and market sentiment, Ethereum is expected to gain enough momentum to push the price towards the $3,600 threshold.
Investors are closely watching the behavior of traders in the futures market for potential changes in market sentiment. Analysis shows that Ethereum funding rates have dropped significantly compared to just a few months ago. Although interest rates have been reduced, they remain at low positive levels, indicating that bull market sentiment still exists and demand continues, while the futures market is not overheated, suggesting that price increases may occur in the near future.
