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Is ETH Ready to Challenge $3.5K and $4K After Recent Crash? (Ethereum Price Analysis)
The Ethereum network has recently faced a significant correction, plummeting to the $3,000 support zone. However, recent market developments have sparked optimism among traders, with some suggesting that ETH might be gearing up to challenge crucial resistance levels at $3.5K and $4K.
Technical indicators on the daily chart have revealed a golden cross, where the 100-day moving average has crossed above the 200-day MA, pointing toward potential bullish momentum. This development aligns with growing sentiment among market participants, who believe that Ethereum’s value will likely rebound in the short to mid-term.
The $3K level has now become a robust support zone, bolstered by the convergence of Fibonacci retracement levels and psychological resistance from traders. As long as this level holds, it is highly probable that ETH will attempt to regain its upward trajectory and challenge the $3.5K and eventually the $4K level.
In an attempt to gauge market sentiment and predict potential price actions, our analysis has noticed a significant spike in funding rates. This metric serves as a proxy for futures market sentiment and reveals that Ethereum’s recent bounce has been accompanied by increased demand from traders. This phenomenon is often indicative of growing confidence among participants, which could translate into sustained buying pressure.
If this optimism can be maintained, there exists potential for ETH to surpass the $4K mark in the coming days or weeks.
Source: cryptopotato.com
