As a researcher with experience in analyzing cryptocurrency markets, I find Ethereum’s recent price spike an intriguing development. The news of the ETF approval has certainly given the asset a significant boost, pushing it toward new heights. However, breaking through the $4,000 resistance level remains a challenge for Ethereum.
The cost of Ethereum has surged significantly in recent days due to the announcement of its Exchange-Traded Fund (ETF) gaining approval.
As a researcher studying the current market trends, I’ve observed an upward trend in the asset’s price. However, despite this positive outlook, the asset has yet to surmount the significant resistance level of $4,000.
Technical Analysis
By TradingRage
The Daily Chart
Over the past few months, Ethereum’s daily price chart shows it has been correcting within a large descending trendline. However, this pattern was broken last week along with the significant resistance level of $3,600, which was mainly driven by the recent ETF approval news.
The financial market is currently facing a significant challenge at the $4,000 resistance level. At the same time, the Relative Strength Index (RSI) is nearing the overbought territory, which can be concerning. However, it’s important to note that the market could still surpass the $4,000 mark in the near term before potentially experiencing a correction.
The 4-Hour Chart
On the 4-hour chart, it’s clear that the market has started to rebound since surpassing the channel’s midline and the $3,000 mark. The market has seen higher peaks and troughs in recent days, yet the Relative Strength Index (RSI) has been generating lower peak values, suggesting a possible bearish divergence.
Yet, as long as the RSI remains above 50%, the momentum will be in favor of a bullish continuation, and the price could break above the $4,000 mark.
Sentiment Analysis
By TradingRage
Funding Rates
The price of Ethereum is surging strongly towards its previous peak of $4,000. It’s more likely now than ever that Ethereum will exceed this level and reach new record highs. However, despite this bullish outlook, futures traders exhibit a bearish sentiment. This isn’t necessarily a negative sign.
The graph showcases Ethereum funding rates, a valuable tool for assessing sentiment in the futures market. A positive funding rate signifies a bullish outlook, while a negative one suggests a bearish market mood.
Currently, Ethereum’s price is attempting to break through the $4,000 resistance mark. Notably, funding rates in the futures market are much lower than they were when ETH was previously hovering around this price point in March. This reduction in funding rates implies that the market isn’t as frenzied as it was before, and the likelihood of a large-scale long liquidation event is decreased compared to the earlier occasion.
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2024-05-28 15:37