This is the level that ETH needs to break to challenge $3,000

Ethereum’s recent price action suggests a strengthening bullish trend as it recovers from key support and approaches the significant resistance region of the 100-day MA.

If ETH breaks this threshold, a sustained uptrend will occur.

Technical Analysis

By Shayan

The daily chart

Ethereum recently witnessed increased buying activity around the average trendline of a multi-month descending channel at approximately $2.4K. This increase in demand led to a notable price rally, pushing it towards the $2.6K resistance region, aligning with the 100-day moving average.

If Ethereum successfully regains this MA and confirms a pullback, it could start a new uptrend. In this bullish scenario, the next target would include the 200-day MA at $2.9K and the upper limit of the descending channel near $2.8K. Conversely, if ETH faces another rejection, it may pull back towards the $2.4k support level for consolidation.

The 4 hour chart

On the 4-hour chart, Ethereum’s recent bounce near the $2.4K region, specifically around the lower boundary of the rising flag, highlights a short-term surge in demand. The price has now reached a critical resistance zone, corresponding to Fibonacci levels 0.5 and 0.618 ($2.6k-$2.8k), where significant supply is expected.

The price of ETH remains bounded within this closed range, limited by the dynamic support of the lower limit of the flag and the resistance at these Fibonacci levels. If the asset breaks this range, it could trigger a short liquidation cascade, which could push it towards the $3,000 threshold.

Chain analysis

By Shayan

Ethereum’s recent price action has led to renewed bullish sentiment in the market, reflected in the ETH Funding Rates metric. It measures the aggressiveness of buyers versus sellers in the futures market, where positive funding rates suggest bullish sentiment and negative rates indicate bearish sentiment.

Funding rates are currently in positive territory with a slight upward trend, indicating that futures traders have shifted to a more bullish view of Ethereum. However, despite this positive change, funding rates remain below the levels seen in March, when ETH was in the early stages of a strong uptrend. This disparity suggests that while there is growing bullish sentiment, it has not yet reached the intensity needed to fuel a meaningful breakout.

For Ethereum to break through key resistance levels and maintain an upward trajectory, a higher funding rate would indicate increased buying interest and confidence from futures traders. Higher funding rates would not only confirm participants’ willingness to go long Ethereum, but also add upward pressure on the price, potentially leading to a stronger and more sustained rally.

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