TLDR
ETH price surpassed $3,400, marking a new monthly high with a 35% increase in the past week
Positive funding rates indicate strong buyer demand and market confidence
Technical support levels established at $3,250 and $3,150 with resistance at $3,450
Current price movement shows consolidation after breaking above $3,220
Market analysts warn of potential overheating due to elevated funding rates
Ethereum has maintained its upward trajectory, breaking through the $3,400 price level as trading volume continues to surge across major exchanges.
The second-largest cryptocurrency by market capitalization has shown remarkable strength, posting a 35% increase over the past week.
Market data indicates that Ethereum began its latest move by clearing the $3,120 resistance zone with conviction. The price action has remained supported above both the $3,150 level and the 100-hourly Simple Moving Average, establishing a solid foundation for further advances.
Trading activity shows the formation of a bullish trend line, with immediate support appearing at $3,220 on the hourly chart. This technical pattern has provided a springboard for buyers, who have successfully defended this level during recent retests.
The rally reached a new monthly peak at $3,443, though some profit-taking emerged at these levels. A minor pullback followed, but the correction remained shallow, only reaching the 23.6% Fibonacci retracement level of the upward movement that began at the $3,070 support.
Funding rates in the futures market have remained consistently positive, indicating strong demand from traders willing to pay premiums for long positions. This metric serves as a key indicator of market sentiment and has contributed to the sustained buying pressure.
Technical analysis reveals multiple support levels have formed during the advance. The first major support sits at $3,250, followed by a stronger zone around $3,150. These levels align with previous resistance areas that have now turned into support, a classic sign of trend strength.
On the upside, immediate resistance appears at $3,320, with a more substantial barrier at $3,450. A successful breach of these levels could open the path toward $3,580, which represents the next major technical objective for bulls.
Trading volume has shown healthy increases during price advances, lending credibility to the move. The volume profile indicates genuine market participation rather than isolated large orders, suggesting broad-based buying interest.
The hourly MACD indicator has begun showing signs of momentum slowdown in the bullish zone, though this often occurs during consolidation phases. The RSI has pulled back below the 50 mark, providing room for another potential leg up before overbought conditions emerge.
Market analysts have noted the importance of the $3,450 resistance level. This price point represents a technical and psychological barrier that could determine the next directional move. A clear break above this level might trigger another wave of buying.
The current market structure suggests the formation of higher lows and higher highs, a pattern typically associated with sustained uptrends. This technical formation has been maintained throughout the recent price action, providing traders with clear reference points.
Some market participants have drawn parallels to the March 2024 rally, noting similar patterns in funding rates and price action. However, current market conditions show stronger fundamental support compared to previous moves.
Should Ethereum fail to maintain momentum above $3,320, traders are watching the $3,250 support level closely. This zone coincides with the bullish trend line and represents a crucial area for maintaining the current upward trajectory.
The $3,000 level remains a major psychological support zone, with additional backing at $2,880. However, current price action suggests limited downside risk as long as broader market sentiment remains positive.
Recent data shows that Exchange flow metrics remain balanced, indicating no unusual movements of ETH to or from trading platforms. This stability in exchange flows often precedes continued upward price movement.
At press time, Ethereum trades at $3,289, showing a 2.2% increase over the past 24 hours. The immediate price action suggests consolidation below the recent highs as the market digests the latest move.
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