After weeks of declines, Ethereum (ETH) appears to have started to recover, closely tracking Bitcoin’s upward move. As of today, ETH has recovered to $3,300, reflecting a 7.5% gain over the past week.
This rebound has sparked renewed interest among market participants, who are closely watching Ethereum’s next moves, especially in airy of improving market sentiment and key indicators pointing to the potential for further gains.
There has been renewed optimism in the market and a path to $3,500?
Most recently, ShayanBTC, a contributor to the CryptoQuant QuickTake platform highlighted that Ethereum is consolidating in the range of $3,200 to $3,500. According to Shayan, market dynamics at this price point suggest that a bullish breakout may be on the horizon.
While funding rates – a key indicator of market sentiment – initially fell, they have started to rise again, signaling a renewed appetite for long positions and greater confidence in Ethereum’s short-term performance.
As Ethereum approaches the $3,500 resistance level, the supply and demand dynamics at this price range are attracting significant attention. The presence of significant supply in this range highlights the importance of maintaining bullish momentum for a breakout.
Shayan pointed out that the key metric to pay attention to will be the funding rate. If funding rates continue to rise, this could indicate increased optimism in the market, increasing the likelihood of Ethereum breaking above $35,000.
According to Shayan, for Ethereum to overcome this critical resistance, the futures market must maintain and strengthen its bullish sentiment. This will require not only a further raise in funding rates, but also an overall raise in long positions and trading activity.
The interplay of these factors will determine whether Ethereum can achieve a decisive breakout, making the upcoming market action crucial for traders and investors.
Performance and prospects on the Ethereum market
So far, Ethereum is currently trading at $3,346 at the time of writing, and the asset has seen an raise of 1.3% over the last day. Meanwhile, on a weekly basis, the price of Ethereum has increased by over 10%, suggesting a steady growth rate over the last 7 days.
However, despite this raise in the ETH price, the asset’s value is still down approximately 31.3% from its all-time high (ATH) of $4,878 recorded in November 2021.
Interestingly, despite this, some analysts are still quite bullish on Ethereum, especially in the face of the novel pro-crypto administration. A prominent cryptocurrency analyst on X, known as Trader PA, recently shared a bullish pattern on the ETH chart in a post that if ETH makes a breakout, there could be a significant upside.
Trump will send Ethereum up to $5,000.
He has already bought $72 million in the last 48 hours. pic.twitter.com/PwzYj5byhC
— TraderPA (@Trader1PA) January 20, 2025
Featured image created with DALL-E, chart from TradingView
