Ethereum shows signs of recovery after failing to break $4,000 resistance

According to CryptoPotato, the price of Ethereum is showing signs of recovery after failing to break the $4,000 resistance level. The cryptocurrency has been making lower highs and lows within a descending channel but is now recovering to the $3,000 level and above the channel’s midline. If the market successfully recovers to these levels, a breakout of the channel and continued progress towards prices of $4,000 and even higher can be expected. The 4-hour chart shows a clearer picture of the recent price action. The market has just broken the $3,000 resistance zone and is currently testing the midline of the descending channel. With the Relative Strength Index (RSI) showing a value of over 50%, Ethereum is likely to break above this level and could continue to extend outwards towards the $3,600 resistance zone. This could signal the start of a new bullish wave. Following the recent drop in Ethereum prices, many futures traders have closed or withdrawn their long positions, indicating that the futures market has cooled down. The Ethereum funding rate indicator, which measures whether buyers or sellers are more actively executing futures orders, shows that the funding rate has dropped significantly compared to a few months ago. Low but positive funding rates can be interpreted as a bullish signal because they suggest that while the futures market is no longer overheated, demand is still there and prices will soon rise.