Ethereum's Price Action Hinges on $3.5K Resistance and Bullish Sentiment

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Ethereum's Price Action Hinges on $3.5K Resistance and Bullish Sentiment
ETHEREUMCRYPTOCURRENCYPRICE ACTION
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Ethereum experiences a 10% surge fueled by market activity surrounding President Trump's inauguration. However, the cryptocurrency faces a critical resistance at $3.5K, with its future trajectory depending on the upcoming price action. Market sentiment plays a key role, with the funding rates metric indicating growing bullish momentum but requiring further increase to surpass the $3.5K level.

Ethereum has been experiencing notable volatility recently, with a 10% surge attributed to increased market activity surrounding President Trump 's inauguration. However, the asset faces a crucial resistance level at $3.5K, and the upcoming price action will likely determine its next trend. ETH encountered substantial buying interest near the 100-day moving average at the $3.2K mark, pushing the price upwards by 10%.

This surge in buying pressure has brought the asset closer to a significant resistance zone at $3.5K, which coincides with the upper boundary of the bullish flag pattern. If this momentum continues, Ethereum is poised to break above the $3.5K threshold, potentially leading to a fresh surge toward the $4K resistance level.Short-term price action will be pivotal in shaping the market's direction, with heightened volatility anticipated. On the 4-hour timeframe, ETH's volatility is evident as the price fluctuates near the 0.5-0.618 Fibonacci retracement levels. This range, bounded by $3.2K as support and $3.5K as resistance, highlights the ongoing battle between buyers and sellers. The current market structure displays optimism, with the potential for a bullish breakout gaining traction. If buyers prevail, Ethereum could embark on a sustained rally toward $4K. However, the increased volatility and potential liquidations necessitate careful risk management, as a rejection at $3.5K could trigger short-term retractions.While Ethereum has been consolidating within a tight range of $3.2K-$3.5K, market participants are assessing the likelihood of a bullish breakout following President Trump's inauguration. The funding rates metric, a key indicator of market sentiment, has shown declining values recently, suggesting a reduction in long positions and waning bullish sentiment. Conversely, the metric has witnessed a sharp increase recently, hinting at growing bullish momentum in the perpetual markets. As Ethereum approaches the $3.5K resistance level, a substantial supply presence at this juncture underscores the need for sustained bullish momentum. For a decisive breakout to occur, the funding rates metric must rise further, reflecting heightened market optimism and increased long positions. Ultimately, a break above $3.5K remains contingent on stronger bullish sentiment in the futures market. The funding rates metric will play a crucial role in determining whether Ethereum can overcome the $3.5K threshold, making the upcoming market action highly significant

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ETHEREUM CRYPTOCURRENCY PRICE ACTION RESISTANCE BULLISH SENTIMENT FUNDING RATES TRUMP

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