Following the bearish correction phase, the price has now reached a critical support zone defined by the 100-day moving average and the 0.5-0.618 Fibonacci levels. Given the strong demand at this point, a medium-term bull reversal looks likely.📈

Examining the daily chart, it appears that Ethereum has entered an important support zone after a corrective pullback. This zone covers the price range between the Fibonacci levels 0.5 ($3421) and 0.618 ($3289) and coincides with the critical support of the 100-day moving average ($3387).

This area is filled with potential demand where market participants may be tempted to open long positions. Given these factors, an increase in demand is expected, leading to a medium-term bullish reversal targeting the $4K resistance. However, if the price falls below this support, the next important line of defense for buyers will be the 200-day moving average.📉

Considering that Ethereum currently stands in a critical support zone with significant potential demand, analyzing future market sentiment is important to predict its next moves.

The funding ratio metric shows whether buyers or sellers are executing orders more aggressively. Positive funding rates indicate bullish sentiment, while negative rates indicate bearish sentiment.

The funding rate metric showed a significant increase following slight declines coinciding with a corrective phase in Ethereum's price. This increase suggests that demand is near the critical $3.3K support level and could halt further bearish pressure and initiate a bull reversal. If the funding rate metric continues its upward trend, this indicates that futures market sentiment has turned bullish and a medium-term bull reversal is more likely.