Ethereum

bullish

2024

when

Daily

<p>The cryptocurrency market has seen a strong uptrend following President Trump’s election, with Ethereum experiencing a significant surge as buyers take control.</p>
<p>However, the market now appears ready for a correction phase to allow consolidation before further gains.</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>The influx of new participants and investors on the daily chart has led to an impulsive uptrend, driving Ethereum’s price above the 100-day and 200-day moving averages. This momentum led to a decisive break above both the 200-day MA at $2.9K and the psychological $3K resistance level, a clear indicator of a bullish shift as the market flushes out short positions.</p>
<p>However, Ethereum is now approaching a crucial resistance region around $3.6K, a level with significant supply and potential profit-taking. Given the strength of this resistance, there’s a high likelihood of a temporary corrective phase to ease buying pressure, likely pulling back toward the 200-day MA to establish a more sustainable uptrend.<a href="https://cryptopotato.com/wp-content/uploads/2024/11/ETH-D-3-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"></a></p>
<h3 id="the-4-hour-chart">The 4-Hour Chart</h3>
<p>The 4-hour chart reveals the intensity of the recent surge, which began at the bearish flag’s lower boundary near $2.4K. The influx of buying pressure led to a breakout above the flag’s upper boundary, pushing Ethereum past the critical $3K mark and invalidating the previous bearish continuation pattern.</p>
<p>This surge shows a clear shift in market sentiment, but due to the impulsive nature of the rally, a consolidation phase is expected. A pullback toward the flag’s upper boundary and the $3K support level would allow the market to stabilize, giving participants a chance to lock in profits and provide entry points for new buyers.</p>
<p>The current technical setup suggests that Ethereum may pause its bullish momentum in the short term. A correction toward $3K would support a healthier continuation of the uptrend, giving the market time to recalibrate before attempting to break higher.<a href="https://cryptopotato.com/wp-content/uploads/2024/11/ETH-4H-3-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-370279" src="https://cryptopotato.com/wp-content/uploads/2024/11/ETH-4H-3-scaled.jpg" alt="" width="2560" height="1372" srcset="https://cryptopotato.com/wp-content/uploads/2024/11/ETH-4H-3-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/11/ETH-4H-3-300x161.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/11/ETH-4H-3-1024x549.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/11/ETH-4H-3-768x411.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/11/ETH-4H-3-1536x823.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/11/ETH-4H-3-2048x1097.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/11/ETH-4H-3-50x27.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>Ethereum’s recent surge to a new yearly high has renewed optimism among market participants, with hopes that a new rally toward an all-time high may be underway. However, analyzing futures market sentiment can provide essential insights into potential short-term fluctuations.</p>
<p>Examining the funding rates for ETH futures, it can be observed that the metric has remained positive in recent weeks, signaling a bullish sentiment in the market. This optimism spiked sharply when Ethereum crossed the $3K threshold, a pattern similar to the rally in March 2024 that also led to an ATH.</p>
<p>Although positive funding rates generally signify healthy demand in a bullish market, elevated funding rates can be a red flag. They indicate an overheated futures market, which can create conditions ripe for long liquidation cascades if the price encounters resistance or experiences a pullback.</p>
<p>In the current market climate, with funding rates at heightened levels, the risk of increased volatility and potential corrections rises. An overheated market could lead to rapid sell-offs, especially if liquidations are triggered by profit-taking or minor corrections. Therefore, investors should manage risk carefully, anticipating short-term fluctuations and preparing for potential volatility.<a href="https://cryptopotato.com/wp-content/uploads/2024/11/Ethereum-Funding-Rates-All-Exchanges-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-370280" src="https://cryptopotato.com/wp-content/uploads/2024/11/Ethereum-Funding-Rates-All-Exchanges-scaled.jpg" alt="" width="2560" height="1440" srcset="https://cryptopotato.com/wp-content/uploads/2024/11/Ethereum-Funding-Rates-All-Exchanges-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/11/Ethereum-Funding-Rates-All-Exchanges-300x169.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/11/Ethereum-Funding-Rates-All-Exchanges-1024x576.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/11/Ethereum-Funding-Rates-All-Exchanges-768x432.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/11/Ethereum-Funding-Rates-All-Exchanges-1536x864.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/11/Ethereum-Funding-Rates-All-Exchanges-2048x1152.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/11/Ethereum-Funding-Rates-All-Exchanges-50x28.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<p>The post <a href="https://cryptopotato.com/ethereum-price-analysis-eth-correction-to-3k-incoming-after-peaking-at-3-4k/" rel="noopener noreferrer nofollow">Ethereum Price Analysis: ETH Correction to $3K Incoming After Peaking at $3.4K?</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.</p>

Ethereum Price Analysis: ETH Correction to $3K Incoming After Peaking at $3.4K?

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