Ethereum price has been rising aggressively in recent days. However, the market is approaching strong resistance levels that could decide the medium-term fate of ETH.
On the daily chart, the price has been rising since the bounce from the $2,200 zone. The $2,400 resistance level was also easily broken.
Currently, ETH is rising towards the $2,700 resistance level and the top of a major ascending channel. However, the relative strength index is also rising and entering overbought territory. This could trigger a pullback or possible reversal if the price reaches the $2,700 resistance level.
4 hour chart
The recent uptrend becomes clearer when looking at the 4-hour chart. The price is approaching the $2,700 resistance level almost vertically.
This very bullish momentum is also supported by the relative strength index above the 70% level. However, the RSI is oversold on the daily and 4-hour charts, so a correction after testing the $2,700 level is quite likely.
Ethereum funding rate
The price of Ethereum has been rising rapidly in recent weeks. Investors are once again optimistic and expect the market to reach new highs in the coming months. However, it can be useful to assess sentiment in the futures market for insight into potential short-term price movements.
This chart shows Ethereum funding rates. These indicate whether buyers or sellers are more active in executing orders overall. A positive value indicates bullish sentiment, while a negative value means total pessimism by futures traders.
As the chart shows, the drop in prices a few weeks ago resulted in lower procurement rates. However, it is rising again as prices rise. While high funding rates are a positive signal, they are also a cause for concern as they indicate an increased likelihood of prolonged liquidation cascades and resulting sudden price declines.
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Cryptocurrency charts by TradingView.