- Ethereum is forming a parallel uptrend channel as the price breaks above the 52-week moving average.
- The RSI of ETH/USD is oversold as funding rates turn generally positive.
The price of Ethereum (ETH) is starting to show a clear trend as traders prepare for a possible bull market in late 2024 or early 2025.
On the 4-hour chart, ETH/USDT formed a bear flag pattern inside a rising channel that is heading towards the $2900 level.
It is likely that the price of ETH will reach this supply zone, which coincides with the 200 EMA cloud on the 4-hour chart.
For an uptrend to consolidate, ETH must break the 200 EMA and stay above it. Although the overall outlook is positive, caution should be exercised if the price remains below the $2900 mark for an extended period.
Source: TradingView
Moreover, on the weekly chart, ETH price is following a two-year uptrend channel, repeatedly touching the lower trend line and indicating a possible rise to the $2,900 mark.
Currently, the price is below the yearly average, with $2,900 being a key resistance point.
The chart also shows that ETH/USDT recently broke the 52-week exponential moving average but left a long tail on the weekly candle, indicating strong buying pressure.
This suggests that despite the current lower price, there is significant interest and potential for a rise towards the $2,900 mark.
Source: Tech Charts, TradingView
Altcoins at their lowest point
Another sign that ETH could rise is the current state of altcoins. They are now at similar levels to those seen in 2020 and 2023 when altcoins bottomed out.
This suggests that Ethereum could be approaching a bottom. Given the fear among market participants and the fact that altcoins are trading at these historic lows, this is a signal of a potential opportunity.
Experienced traders often advise being more aggressive when the market is fearful. While retail investors remain cautious, successful traders see this as an opportunity to invest.
Source: TradingView
ETH’s RSI is oversold with positive funding rates
Looking at the ETH/USDT price action, the RSI has fallen into the oversold zone and has recovered strongly from the 30% mark.
This move corresponds to the ascending support trend line for ETH/USD and suggests that the price will resume higher from this point. This upswing could propel the price of Ethereum to new highs.
Source: TradingView
Finally, negative funding rates generally mean that traders who bet against Ethereum (short positions) outpay those who bet against it (long positions), indicating a bearish sentiment.
However, Glassnode data shows that Ethereum funding rates were mostly positive in 2024, reflecting optimistic expectations.
Source: Coinglass
Read Ethereum (ETH) price prediction 2024-2025
The recent drop in Ethereum price to $2,100, coupled with falling funding rates, indicates a change in market sentiment.
Despite this recent decline, overall positive funding rates in 2024 suggest a possible price rally in the near future.
