Ethereum

bullish

Resistance

<a href="https://yellow.com/asset/eth">Ethereum</a> is once more testing the significant $4K resistance level after experiencing strong buying pressure following a dip to the $3.5K support. A successful breakout could spark a short-squeeze, propelling prices higher. 
Ethereum <a href="https://cryptopotato.com/heres-what-needs-to-happen-for-eth-to-break-its-all-time-high-soon-ethereum-price-analysis/">encountered</a> a critical rejection at the $4K resistance, leading to a drop towards the crucial $3.5K support. 
This zone has consistently attracted substantial buying interest, facilitating a robust price rebound back to the $4K resistance. Buyers are currently attempting to surmount this crucial level, which could initiate a prolonged rally toward Ethereum's all-time high. 
Should ETH surpass the $4K barrier soon, a short-squeeze might ensue, forcing short sellers to cover their positions and boosting the price further. However, this $4K region also remains a formidable supply zone; failure to break through could result in another setback. In such a case, Ethereum may persist in consolidating between $3.5K and $4K in the near term as market forces vie for dominance. 
In the 4-hour view, Ethereum is navigating an ascending price channel. It faced rejection near the channel's upper boundary around the $4K mark, retracing sharply and testing the lower boundary near the $3.5K support. Renewed buying interest at this point led to a bullish recovery, lifting ETH back toward the channel's median at $4K. The $4K level presents substantial resistance, aligning with the channel's upper edge. 
A decisive breakthrough here could unleash a fresh bullish run, aiming for its all-time high. Conversely, another rejection could confine the price within the channel, with $3.5K providing key support. 
The futures market is pivotal in influencing price dynamics and volatility. Among its tools, the funding rate offers critical insight into market sentiment. 
Recents charts illustrate a bullish rebound from the $3.5K support, accompanied by a rise in funding rates, signaling growing interest in Ethereum long positions. This spike reflects intensified buying pressure and a bullish outlook, suggesting that a continuous uptrend in funding rates could make a breakout beyond $4K increasingly feasible.

Ethereum's $4K Resistance Challenge: Can It Break Through?

Yellow News

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