Ethereum (ETH) price action shows strong momentum as the bulls reach the $4,000 level

TLDR

ETH price surpasses $3,400, new monthly high, up 35% last week Positive volume indicates buyer interest and market confidence Technical support levels at $3,250 and $3,150 resistance at $3,450 indicates consolidation after current price action breached above $3,220 Market analysts warn that due to the high level of funding, overheating may occur

Ethereum maintained its upward trajectory, breaking through the $3,400 price level as trading volume increased on major exchanges.

The second largest cryptocurrency by market capitalization has shown remarkable strength, rising 35% in the past week.

According to market data, Ethereum started its recent move by clearing the $3,120 defense zone. The price action has been supported above the $3,150 level and the 100 hourly simple moving average, establishing a solid base for further gains.

Trading activity indicates the formation of a bullish trend line, with immediate support seen at $3,220 on the hourly chart. This technical pattern has provided a springboard for buyers who have successfully maintained this level during recent tests.

The rally reached a new monthly high of $3,443, although it managed to make some gains at these levels. A small pullback followed, but the correction was shallow, reaching the 23.6% Fibonacci retracement level of the upward move that started at $3,070 support.

Funding volume in the futures market has remained consistently positive, indicating strong interest from traders to pay premiums for long positions. This measure serves as a key indicator of market sentiment and has contributed to sustained buying pressure.

Technical analysis shows that several support levels have been formed in the early period. The first major support is located at $3,250, followed by a strong zone around $3,150. These levels coincide with earlier areas of resistance that have now turned into support, a classic sign of trend strength.

On the downside, immediate resistance is seen at $3,320, with a more significant barrier at $3,450. A successful breach of these levels could open the way to $3,580, which represents the next major technical objective of the bulls.

Trading volume showed a healthy increase during the price advance, lending credence to the move. The volume profile shows real market participation rather than isolated large orders, suggesting broad-based buying interest.

The hourly MACD indicator is starting to show signs of slowing down in the bullish zone, although this usually happens in consolidating phases. The RSI has pulled back below the 50 mark, giving room for another leg up before overbought conditions occur.

Market analysts note the importance of the $3,450 resistance level. This price point represents a technical and psychological barrier that can determine the next directional action. A clear break above this level could trigger another wave of buying.

The current market structure suggests the formation of higher lows and higher highs, which is typically associated with further uptrends. This technical pattern has been maintained throughout the recent price action, providing traders with clear reference points.

Some market participants are seeing similarities to the March 2024 rally, showing similar patterns in currency rates and price action. However, current market conditions show strong fundamental support compared to previous movements.

If Ethereum fails to maintain momentum above $3,320, traders will be closely watching the $3,250 support level. This zone coincides with a bullish trend line and represents a critical area for continuation of the current uptrend.

The $3,000 level remains a major psychological support zone, with additional support at $2,880. However, the current price action indicates limited risk as long as broader market sentiment remains positive.

Recent data shows that exchange flow parameters remain balanced, indicating no abnormal movement of ETH to trading platforms. This stabilization of exchange flows often precedes upward price movements.

At press time, Ethereum is trading at $3,289, which represents an increase of 2.2% in the last 24 hours. Immediate price action suggests consolidation below recent highs as the market consolidates recent activity.