Ethereum’s Price Approaching Strong Resistance Level
Ethereum’s price has been experiencing a strong rally in recent days. However, it is now approaching a significant resistance level that could determine its mid-term fate.
Technical Analysis
By TradingRage
The Daily Chart
On the daily chart, Ethereum’s price has been rallying since rebounding from the $2,200 zone. It has successfully broken through the $2,400 resistance level.
Currently, ETH is climbing towards the $2,700 resistance level and the upper boundary of the ascending channel. However, the Relative Strength Index (RSI) has entered the overbought region, indicating a possible pullback or reversal once the price reaches $2,700.
The 4-Hour Chart
Examining the 4-hour chart reveals a clearer picture of the recent rally. The price is approaching the $2,700 resistance level at a rapid pace.
The RSI on both the daily and 4-hour charts indicates oversold conditions, increasing the likelihood of a correction after testing the $2,700 level.
Sentiment Analysis
By TradingRage
Ethereum Funding Rates
Ethereum’s price has been rising rapidly, leading to renewed optimism among investors who anticipate a new all-time high in the coming months. However, evaluating futures market sentiment can provide insight into potential short-term price developments.
The Ethereum funding rates chart indicates whether buyers or sellers are executing orders more aggressively overall. Positive values indicate bullish sentiment, while negative values suggest pessimism among futures traders.
Although the recent price drop caused funding rates to decrease, they are now rising again as the price rallies. While this is a positive signal, high funding rates also raise concerns about the increased probability of a long-liquidation cascade and sudden price drops.
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