Ethereum Price Update: Strengthening Against Key Resistance
Ethereum shows promising strength as it approaches critical resistance levels following an early October decline.
Ethereum is displaying renewed strength, attempting to breach crucial resistance levels following a noticeable drop in early October. The bounce from the lower barrier of the descending channel has propelled it toward $4,150. Although momentum is increasing, market caution persists as it approaches significant resistance.
Technical Analysis
By Shayan
The Daily Chart
On the daily chart, Ethereum is testing a supply zone just below the peak of the descending channel. Last week’s rejection wicks indicated a clear seller interest; however, today’s candle indicates a potential attempt to break through this range. The 100-day moving average around $4,150 serves as immediate resistance, while the 200-day average sits lower at approximately $3,300. Should ETH close above $4,200 and push past the upper channel boundary, the next target could be near $4,600, although stronger buying signals are still needed.
Daily Chart
The 4-Hour Chart
On the 4-hour chart, ETH has briefly pierced the orange supply zone at $4,200 but faced an immediate rejection. This zone is located just beneath the descending channel’s peak, introducing additional factors to consider. The RSI displayed an overbought signal and is now declining from heightened levels, indicating a possible short-term pullback or consolidation. Nevertheless, the formation of higher lows and a robust rally from $3,600 suggest strong buyer activity at lower levels.
4-Hour Chart
Sentiment Analysis
Funding Rates
Recent sentiment in the Ethereum futures market reflects increasing optimism, yet it has not entered a dangerous territory. Positive funding rates emerged following significant negative prints during the September and early October downturns. This indicates that more investors are positioning for long trades, anticipating further price increases. However, the absence of excessively high funding suggests that the market isn’t overly euphoric or leveraged, a positive sign for continuation, especially if prices can break through the existing resistance range.
Funding Rates
