Ethereum Price Analysis: ETH Prepares for a Major Move, Is a Break Above $3.5K Imminent?

Ethereum sellers have faced challenges in driving the asset below the significant $3K support for months, with recent activity suggesting a potential bullish rebound. However, ETH remains locked between the 100-day moving average at $3.3K and the 200-day moving average at $3K. A decisive breakout from this range will be key in determining the cryptocurrency’s next major movement.

**Technical Analysis**
*By Shayan*

**The Daily Chart**
Ethereum’s recent price behavior has been in a consolidation phase following a period of selling pressure, as sellers aim to breach the $3K support level. Currently, the asset is confined between the 100-day MA at $3.3K and the 200-day MA at $3K. Recently, ETH has experienced strong buying pressure near the $3K support zone, resulting in a notable rebound, indicating a strong buyer presence defending this level. However, for a successful breakout above the $3.5K mark, Ethereum needs increased buying activity and bullish momentum. The price action within this range will be crucial in determining Ethereum’s mid-term trajectory, with both bulls and bears ready for a potential breakout.

**The 4-Hour Chart**
On the 4-hour timeframe, Ethereum is consolidating within a descending wedge pattern. The price recently bounced from the wedge’s lower boundary at $3K, aligning with the 0.618 Fibonacci retracement level, reinforcing this area as a strong support zone. Currently, Ethereum is trading within the tight $3K-$3.3K range, nearing the narrowing end of the wedge pattern. A breakout from this zone is imminent, and its direction will be critical in determining the market’s next major trend. Given the market conditions, a bullish breakout above this pattern could trigger a rally toward the $4K threshold in the mid-term.

**Onchain Analysis**
*By Shayan*

While ETH has shown early signs of recovery, market participants are closely watching for a potential breakout above the current price range. The key question remains whether the cryptocurrency can generate enough momentum to surpass the critical $3.5K resistance level. The funding rates metric, an important indicator of market sentiment, has recently declined, suggesting the market is no longer overheated. This cooling-off phase indicates that excessive leverage has been reduced, creating room for a potential sustained rally if demand in the spot market increases. Notably, funding rates have started to rise slightly alongside Ethereum’s price rebound, hinting at growing bullish momentum in the perpetual futures market. However, for a decisive breakout above the $3.5K threshold, the funding rates metric must increase further, signaling heightened optimism and an influx of long positions. If demand continues to grow, ETH could be poised for a significant rally in the coming days.

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