CandleFocus

Ethereum Price Analysis: Here’s What Next for ETH After Getting Rejected at $4K

Author: Content Editor
Ethereum's price is currently at a critical zone near $4,000, facing resistance but also showing signs of consolidation. The market remains bullish overall, but short-term fluctuations within the $3,500-$4,000 range are expected before a potential breakout or deeper pullback. The rejection at the $4,000 resistance level has caused a slight decline, indicating difficulty for buyers to overcome. There is a period of low volatility and consolidation expected within the $3,500-$4,000 range, with the possibility of a corrective stage indicated by the RSI indicator's bearish divergence. Despite the resistance, ETH buyers are likely to make another attempt to push past $4,000, but a period of sideways movement and digestion of recent gains is expected beforehand. Ethereum has been maintaining a bullish market structure, trending within an ascending price channel. A break below the channel's lower trendline could indicate weakening bullish momentum and a possible pullback to the $3,500 support level, while maintaining it could lead to another attempt to break $4,000. The surge in Ethereum's funding rates, reflecting futures market sentiment, suggests strong bullish sentiment and anticipation of new all-time highs. However, such a high funding rate often precedes a correction to sustain momentum and avoid excessive volatility. Overall, while Ethereum's rally is driven by bullish sentiment, a short-term correction may be needed for healthier and more sustainable price growth.

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