ETH stalls at $4K resistance, but bullish signals emerge
The valuation of Ethereum has seen a remarkable surge after the announcement of its Exchange-Traded Fund (ETF) getting the green light.
Despite the upswing, a formidable barrier remains, as the digital asset has yet to breach the sought-after $4,000 threshold.
Market Evaluation
Provided by TradingRage
Insights from the Daily Perspective
Observing the daily timeframe, it's clear that Ethereum's valuation had been undergoing a correction within a significant downward trajectory for the preceding months. However, following the exhilarating ETF announcement, the cryptocurrency triumphantly exited the channel and surpassed the $3,600 resistance barrier last week.
At present, the market is challenging the $4,000 resistance area, with the Relative Strength Index teetering on the edge of the overbought territory. Although the RSI readings provoke concern, there's still a tangible opportunity for the market to ascend beyond $4,000 shortly, potentially followed by a slight retracement.
The 4-Hour Perspective
In the 4-hour view, the rally initiated after surmounting the channel's central line and the $3,000 marker is undeniable. Recent developments show the market forming a pattern of ascending highs and lows, whereas the RSI plots a series of descending highs, hinting at an approaching bearish divergence.
However, with the RSI maintaining a position above 50%, the dynamics favor a bullish progression, potentially elevating the price over the $4,000 frontier.
Analysis of Market Sentiment
Provided by TradingRage
Evaluation of Funding Rates
The aggressive ascent of Ethereum's valuation towards the recent peak of $4,000 brings optimism about surpassing the $4,000 milestone and setting new records. Despite this, the sentiment among futures traders remains cautiously pessimistic—a perspective that’s far from negative.
This analysis highlights the Ethereum funding rates, a premier tool for gauging sentiment in the futures market. Positive figures reflect a bullish outlook, whereas negative ones suggest bearish sentiment.
While Ethereum currently encounters the $4,000 resistance once more, the funding rates are considerably lower than their March levels when the price hovered around the same mark. This reduction signals an unexaggerated futures market and diminishes the likelihood of a significant sell-off compared to prior instances.
