Ethereum’s price is rebounding aggressively after the recent decline from the $4,800 area. Investors are now hopeful for another push toward the $5,000 level and beyond in the coming weeks.
By Shayan
ETH has successfully defended the $4,000 support zone, bouncing from the area. This zone overlaps with the 100-day moving average and a previous demand block, making it a technically significant level.
The RSI has also recovered from the oversold region and now sits at 50, suggesting momentum is shifting back toward the bulls. The asset is currently pushing toward the $4,800 resistance level and the midline of the large ascending channel. A breakout from this area would open the doors for a historical ETH rally in the coming months.
On the 4H chart, ETH has printed a textbook head and shoulders recovery. After bouncing from the support zone near $3,850, it reclaimed the $4,100 level and formed a higher low. It is now approaching the $4,400-$4,500 supply zone, which initiated last week’s decline.
Overall, the short-term structure is now bullish. If ETH breaks above the $4,500 level, the next target could be the $4,800 high. However, a rejection from here could lead to a short consolidation phase before continuation.
Ethereum funding rates have recently bounced back into positive territory after briefly turning negative during the latest price drop. This negative dip showed that short sellers had taken control, pushing funding rates below zero as the market leaned heavily bearish.
But the quick recovery suggests those shorts were either closed or liquidated, and traders are slowly regaining confidence. The return to positive funding indicates a growing appetite for long positions, although that interest still looks cautious for now.
Compared to previous cycles, the current funding remains well below euphoric levels. There’s no sign of excessive leverage or overcrowded longs, which is generally a healthy sign. When funding resets like this without spiking too quickly, it often reflects a more stable trading environment. If this steady climb in funding continues, it could support a more sustained price recovery rather than a short-lived pump.
