Ethereum Price Analysis: Bullish Rebound Expected as Price Reaches Crucial Support Zone
After a bearish correction phase, Ethereum’s price has now reached a crucial support zone, marked by the 100-day moving average and the 0.5-0.618 Fibonacci levels. This support zone has seen strong demand, indicating a potential mid-term bullish rebound.
Analyzing the daily chart, Ethereum is currently in a significant support zone between the $3421 and $3289 Fibonacci levels, along with the critical support of the 100-day moving average at $3387. Market participants are expected to show interest in opening long positions in this area, leading to an increase in demand and a mid-term bullish reversal targeting the $4K resistance.
On the 4-hour chart, Ethereum’s recent corrective move has formed a bullish continuation flag pattern. If the price breaks out above the upper boundary of this pattern, it could signal a continuation of the bullish trend towards the $4K resistance. However, if the price drops below the $3.3K support, a decline towards the $2.9K support is likely.
The Ethereum funding rate metric, which indicates market sentiment, has shown a notable increase recently after a corrective phase. This uptick suggests that demand is present near the crucial $3.3K support level, potentially leading to a bullish reversal. If the funding rate continues to rise, it indicates a shift towards bullish sentiment in the futures market, making a mid-term bullish reversal more probable.
Overall, Ethereum is currently in a critical support region with significant potential demand, and analyzing market sentiment will be crucial in forecasting its next moves. Traders and investors are advised to stay informed and monitor key levels and indicators for potential trading opportunities.
