Ethereum Corrective Phase and Potential for Impulsive Surge

After facing rejection at the $4K price level, Ethereum entered a corrective phase, resulting in a significant 25% decline. However, as the price approached the 0.618 Fibonacci level, it experienced a rebound, indicating the possibility of an impulsive surge.

Daily Chart Analysis

A detailed analysis of the daily chart reveals a prevailing bullish sentiment surrounding Ethereum. The price briefly surpassed the critical resistance at $4K but encountered selling pressure at this level. As a result, there was a retracement towards the support zone between the 0.5 and 0.618 Fibonacci retracement levels.

This support zone attracts significant demand, leading to increased buying pressure. Consequently, the price found substantial support in this region and experienced a notable rebound. However, Ethereum seems to be confined within a crucial price range, with resistance at $4K and support at $3K. A breakout from this range will likely determine Ethereum’s future prospects.

4-Hour Chart Analysis

Further analysis of the 4-hour chart confirms the presence of sellers near the $4K resistance region. This stalled Ethereum’s uptrend and resulted in a significant reversal. After briefly breaching $4K, the price faced selling pressure, leading to a sharp decline and liquidation of long positions.

However, Ethereum’s downtrend was halted when it approached the psychological support region at $3K, initiating a bullish reversal. Currently, the price faces two significant milestones: resistance around $4K and support around $3.3K. It is expected that Ethereum will consolidate within this range in the short term and find support in the medium term to continue its overall upward trajectory.

Sentiment Analysis

Ethereum’s price surge in recent weeks, reaching $4K, has attracted speculators and increased buying pressure. This has boosted investor confidence and raised expectations for further price rallies.

An analysis of Ethereum funding rates provides insights into the sentiment among market participants. Positive values indicate bullish sentiment, while negative values suggest pessimism. After a significant surge in funding rate values, there has been a decline concurrent with the price retracement. This indicates that many long positions have been liquidated, resulting in a cooling-down phase in the futures market.

However, this trend also suggests the potential for another impulsive move in the mid-term, with the possibility of long positions being reinstated in the perpetual market.

🔥 Hot Take: Ethereum’s Recovery and Future Outlook 🔥

Ethereum’s recent corrective phase and subsequent rebound indicate resilience and potential for further growth. While facing resistance at $4K, the price found support at the 0.618 Fibonacci level and experienced a notable bounce-back.

Technical analysis of both the daily and 4-hour charts suggests that Ethereum is currently consolidating within a crucial range. A breakout from this range will determine its future prospects. If it can overcome the resistance at $4K, Ethereum may continue its upward trajectory and potentially reach new all-time highs.

Sentiment analysis shows that despite the retracement, there is still optimism among market participants. The cooling-down phase in the futures market presents an opportunity for long positions to be reinstated, indicating potential for another impulsive move in the mid-term.

Overall, Ethereum’s recovery from its corrective phase and positive sentiment among investors bode well for its future outlook. As always, it is essential to conduct thorough research and stay updated on market trends before making any investment decisions.