According to CryptoPotato, Ethereum's price is showing signs of recovery after failing to break the $4,000 resistance level. The cryptocurrency has been making lower highs and lows within a descending channel, but is now climbing back above the $3,000 level and the midline of the channel. If the market successfully recovers back to these levels, a breakout above the channel and a continuation toward $4,000 and even higher prices can be anticipated.
The 4-hour chart provides a clearer picture of recent price action. The market has barely broken through the $3,000 resistance zone and is currently testing the midline of the descending channel. With the Relative Strength Index (RSI) showing values above 50%, Ethereum is likely to break through the level and potentially continue outward to the $3,600 resistance area. This could signal the start of a new bullish wave.
Following the recent decline in Ethereum’s price, many futures traders have liquidated or reversed their long positions, indicating that the futures market has cooled down. The Ethereum funding rates metric, which measures whether buyers or sellers are executing their futures orders more aggressively, shows that the funding rates have significantly dropped compared to a couple of months ago. Low but positive funding rates can be interpreted as a bullish signal, as they show that while the futures market is not overheated anymore, the demand is still there, and the price can soon rally higher.
