Ethereum

bullish

Daily

<p>Ethereum’s bullish momentum has weakened after breaching the middle trendline of a multi-month descending channel, resulting in muted sideways price action.</p>
<p>This consolidation phase could lead to a pullback, potentially setting up the stage for the next leg of the bullish trend.</p>
<h2 id="technical-analysis">Technical Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<h3 id="the-daily-chart">The Daily Chart</h3>
<p>Ethereum experienced a surge driven by increased buying activity in the perpetual and spot markets, breaking above the crucial $2.5K resistance level. This breakout signals buyers’ intent to push ETH toward its yearly high of $4K despite the prevailing bearish sentiment over the past few months.</p>
<p>Currently, Ethereum’s price is consolidating in a sideways pattern, hinting at a potential pullback toward the recently broken trendline. If the price retraces to the $2.5K level and finds strong support, the pullback will likely conclude, positioning Ethereum for a renewed push toward the channel’s upper boundary, around the $3K mark.<a href="https://cryptopotato.com/wp-content/uploads/2024/09/ETH-D-5-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"></a></p>
<h3 id="the-4-hour-chart">The 4-Hour Chart</h3>
<p>On the 4-hour chart, Ethereum’s upward momentum stalled upon reaching the significant resistance zone near the 0.5 Fibonacci retracement level ($2.6K). This area presents a supply zone that has consistently acted as a barrier for buyers aiming for the $3K resistance level.</p>
<p>Although ETH may face a period of sideways consolidation or corrective retracements in the short term, a resurgence of bullish momentum could lead to a breakout above this resistance zone. A short-squeeze event may follow if this occurs, driving further price gains. However, for now, a consolidation phase is expected before Ethereum makes its next impulsive move.<a href="https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-5-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-362454" src="https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-5-scaled.jpg" alt="" width="2560" height="1307" srcset="https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-5-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-5-300x153.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-5-1024x523.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-5-768x392.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-5-1536x784.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-5-2048x1046.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/09/ETH-4H-5-50x26.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<h2 id="onchain-analysis">Onchain Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<p>The perpetual futures market plays a significant role in driving overall price movements, making it essential to assess the sentiment of futures traders for clues about potential trends. This analysis focuses on Ethereum’s 30-day moving average of funding rates, a key metric that provides insight into whether buyers or sellers are more aggressive in executing market orders within the futures market.</p>
<p>The 30-day moving average of ETH funding rates has recently shown a slight bullish shift after a prolonged decline. This shift has coincided with a broader market rebound and an uptick in ETH’s price, suggesting a possible change in overall sentiment. The rise in funding rates indicates increased buying activity among futures traders, signalling that market participants may be turning more bullish.</p>
<p>For Ethereum to continue its recovery and target higher price levels, the demand in the perpetual futures market must keep rising in the coming weeks. A sustained uptrend in the funding rates could drive further price surges in the mid-term. However, this bullish sentiment will need consistent follow-through from buyers to maintain momentum, as any significant reversal in funding rates could stall Ethereum’s price growth.<a href="https://cryptopotato.com/wp-content/uploads/2024/09/Ethereum-Rates-All-Exchanges-scaled.jpeg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-362453" src="https://cryptopotato.com/wp-content/uploads/2024/09/Ethereum-Rates-All-Exchanges-scaled.jpeg" alt="" width="2560" height="1440" srcset="https://cryptopotato.com/wp-content/uploads/2024/09/Ethereum-Rates-All-Exchanges-scaled.jpeg 2560w, https://cryptopotato.com/wp-content/uploads/2024/09/Ethereum-Rates-All-Exchanges-300x169.jpeg 300w, https://cryptopotato.com/wp-content/uploads/2024/09/Ethereum-Rates-All-Exchanges-1024x576.jpeg 1024w, https://cryptopotato.com/wp-content/uploads/2024/09/Ethereum-Rates-All-Exchanges-768x432.jpeg 768w, https://cryptopotato.com/wp-content/uploads/2024/09/Ethereum-Rates-All-Exchanges-1536x864.jpeg 1536w, https://cryptopotato.com/wp-content/uploads/2024/09/Ethereum-Rates-All-Exchanges-2048x1152.jpeg 2048w, https://cryptopotato.com/wp-content/uploads/2024/09/Ethereum-Rates-All-Exchanges-50x28.jpeg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<p>The post <a href="https://cryptopotato.com/eths-path-to-3k-involves-maintaining-this-critical-support-ethereum-price-analysis/" rel="noopener noreferrer nofollow">ETH’s Path to $3K Involves Maintaining This Critical Support (Ethereum Price Analysis)</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.</p>

ETH’s Path to $3K Involves Maintaining This Critical Support (Ethereum Price Analysis)

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