Is the Ethereum bull market back or is another drop below $3,000 imminent? (ETH Price Analysis)

Ethereum price has yet to continue its upward trend following the rejection from the $4,000 resistance level. However, the bull is now showing signs of strength and is likely indicative of a more significant recovery.

technical analysis

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daily chart

As the daily chart shows, Ethereum price failed to break out of the $4,000 resistance level and has been lowering its highs and lows in a descending channel ever since.

Still, the cryptocurrency is rising above the $3,000 level and the midline of the channel. If the market successfully recovers to these levels, we can expect it to break out of the channel and continue towards $4,000 and even higher prices.

4 hour chart

The 4-hour chart gives a clearer picture of recent price movements. The market has barely broken through the $3,000 resistance zone and is currently testing the midline of the descending channel.

With the RSI showing above 50%, ETH could break through that level and move outward to the $3,600 resistance area. In this case, market participants may become optimistic that a new bullish wave will begin soon.

sentiment analysis

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Ethereum funding rate

The recent drop in Ethereum prices has led many futures traders to liquidate or cancel their long positions. This could be a good sign, as the futures market is seemingly cooling down.

This chart shows Ethereum's funding rate indicator, which measures whether buyers or sellers are more aggressively executing futures orders (using market orders). Positive values ​​indicate bullish sentiment and negative values ​​indicate bearish expectations.

It is clear that funding rates are much lower than they were a few months ago. A low but positive funding rate can be interpreted as a bullish signal, as it indicates that even if the futures market is not overheated, demand is still there and prices may soon rise.