Ethereum Price Analysis: Here’s What Next for ETH After Getting Rejected at $4K
2024-12-09

Ethereum’s price is in a critical zone near $4K, facing resistance but also showing signs of consolidation. While the market remains bullish overall, short-term fluctuations within the $3.5K-$4K range are expected before a potential breakout or deeper pullback.Technical Analysis
By ShayanThe Daily Chart
Ethereum has made impressive progress, surging toward the psychological $4K resistance region. This price level coincides with Ethereum’s yearly high and is a strong area of selling pressure. Recently, the rejection at this line has caused a slight decline, signaling that the resistance is proving difficult for buyers to overcome.
After the correction, the market entered a period of low volatility, suggesting a short-term consolidation phase. This phase could last within the $3.5K-$4K range as buyers and sellers reach a standoff. The RSI indicator’s bearish divergence supports the notion of an overbought market, reinforcing the likelihood of this corrective stage.
While the price has faced some resistance, ETH buyers will likely make another attempt to push past $4K. However, before that, a period of sideways movement is expected as the market digests the recent gains.The 4-Hour Chart
On the 4-hour timeframe, ETH maintains a bullish market structure, consistently forming higher highs and higher lows. Despite the rejection at $4K, the overall trend remains upward, as Ethereum has been trending within an ascending price channel.
The failure at the $4K resistance zone has led to a period of consolidation, with the asset hovering just below this critical level. The lower boundary of the ascending channel, currently around $3.7K, provides short-term support. If the price continues to maintain it, a bullish surge toward the $4K threshold is likely.
On the other hand, a break below the channel’s lower trendline could indicate weakening bullish momentum, with a possible pullback toward the $3.5K support level in the mid-term. However, if buyers manage to defend it, another attempt to break $4K could be imminent.Onchain Analysis
By Shayan
Ethereum’s Funding Rates metric, reflecting futures market sentiment, has surged to its highest level in months, coinciding with a significant price rally. This highlights strong bullish sentiment, with traders anticipating new all-time highs. However, the market may require a correction to sustain this momentum.
Funding rates are at levels last seen in January 2024, when Ethereum rallied by 88%. This reflects increased long-position interest as optimism grows. Similar to January, this sharp increase suggests the likelihood of a pullback, allowing the market to stabilize and avoid excessive volatility.
While Ethereum’s rally is underpinned by bullish sentiment, the spike in funding rates signals the need for a short-term correction, paving the way for healthier and more sustainable price growth.