After falling below the rising flag pattern, Ethereum boosted it to retest the broken trendline. If sales at this level of pressure intensifies, a deeper drop to the $2K support zone could continue.
By Shayan
Daily Charts
ETH has recently collapsed from the ascending flag pattern, causing a correction stage. After finding strong support around the $2.1K level, the cryptocurrency bounced back and retarded at $2.4k towards the broken trend line.
Despite the rebound, the lack of significant volatility and waning momentum around this critical level suggests that buyers are being exhausted. If sales pressure gets stronger here, ETH may complete that pullback and extend the modification.
In this case, the $2K mark has appeared as the next major defensive zone the Bulls are trying to regain control.
4-hour chart
Zooming into the 4-hour time frame, ETH initially found strong support in the 0.5-0.618 Fibonacci retracement zone. This is a historically reliable level under revision.
A sharp response from this range caused rapid movement. However, the rally is currently stagnating precisely at the lower limit of the previous flag, and is now serving as a resistance of nearly $2.4k.
This rejection increases the chances of another downward leg unless the buyer can quickly regain control. The $2.1K zone overlapping with FIB support remains an important battlefield.
As long as this area is retained, the market structure retains bullish bias. However, if you violate it, it could pave the way for a deeper decline to $2,000.
By Shayan
Funding rate metrics serve as a key gauge of trader sentiment within the futures market. Typically, healthy and sustainable uptrends have steadily risen in funding rates, reflecting a growing interest from long-standing position traders in both the lasting future and the spot market.
However, recent trends have revealed a decline in Ethereum’s funding rate, eroding bullish momentum and fatigue for potential buyers. This shift increases the possibility of short-term rejection and deeper correctional movement.
That said, approaching the neutral zone near zero funding rates could suggest a reset at a leveraged position, indicating that the market is cooling. This environment is often ahead of new demand, and once the current integration phase is over, it could pave the way for a strong bullish continuation.
