The price of Ethereum (ETH) has dropped by 15% in the past week, but on-chain data suggests that this decline is in line with the broader crypto market and that there is still a strong bullish sentiment toward the altcoin. Two key on-chain metrics indicate a potential rally for ETH towards the $4,000 price level in the near future. Firstly, the rising Estimated Leverage Ratio (ELR) for Ethereum reflects an increased appetite for risk among traders, indicating optimism and potential for price rebound. Secondly, the positive funding rate for ETH suggests a bullish sentiment and expectations of price increases. If buying activity increases and the bullish bias persists, ETH's price could rally above resistance levels and potentially surpass the $4,000 mark. However, if the downward trend continues, ETH's value could drop and invalidate this bullish outlook.



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