news 
Is ETH Ready to Challenge $3.5K and $4K After Recent Crash? (Ethereum Price Analysis)
Ethereum, the second-largest cryptocurrency by market capitalization, has recently found stability at the crucial $3,000 support region following a significant correction. This move may signal an impending reversal in the current trend, potentially paving the way for a mid-term bullish rebound.
After Ethereum’s failure to sustain its upward momentum above the psychologically important $4K level, the asset faced substantial selling pressure, leading to a sharp decline and subsequent stabilization at the aforementioned support zone. The recent development of a golden cross on the daily chart further underscores the possibility of a short-to-medium term reversal in trend.
The daily chart reveals that Ethereum’s price action has been marked by increased volatility, particularly following its rejection at the $4K resistance level. This sudden shift towards extreme uncertainty culminated in a test of the critical $3,000 region, which has thus far held as a robust support line. The current price action suggests a build-up of buying interest, with this zone acting as a vital defensive line for bulls.
If Ethereum’s recent consolidation above the vital $3,000 barrier holds, it may embolden buyers to re-enter the market, leading to a fresh bullish surge targeting the previously unbreached $3.5K and potentially even $4K resistance levels in the short-to-medium term. Conversely, an unexpected breakdown below this critical support could unleash a torrent of liquidations, driving the price towards the $2,500 level.
On-chain analysis also suggests that Ethereum’s recent consolidation has allowed bullish participants to re-enter the market. This renewed demand is reflected in the sharp increase in funding rates, indicating growing confidence among traders as they anticipate a reversal in the current trend. The recent surge in funding rates implies an influx of buyers, which could ultimately drive Ethereum towards the critical $4K resistance level.
While the cryptocurrency’s recent price action may be encouraging for long-term investors, it is essential to conduct one’s own research before making any investment decisions.
Source: cryptopotato.com
