The leading altcoin, Ethereum, has seen a 15% decrease in price over the past week, reflecting the broader sell-off in the crypto market. Despite this dip, a bullish sentiment towards Ethereum endures. Two key metrics from on-chain data suggest a potential rally, possibly driving ETH towards the $4,000 mark soon.
Ethereum's Estimated Leverage Ratio (ELR) indicates a strong risk appetite among traders, sitting at 0.53 according to CryptoQuant. This growing ELR suggests optimism about future price growth, with traders leveraging their positions to potentially amplify gains despite recent declines.
Another sign of potential rebound is ETH's positive funding rate, currently at 0.016, as per CryptoQuant. A positive rate implies a bullish sentiment, with long traders paying short ones, suggesting expectations of future price increases for Ethereum.
Currently trading at $3,344, Ethereum might break through resistance at $3,439 if the bullish trend holds. Such movement could lead to the coin surpassing the $4,000 psychological barrier. However, if the bearish tendency sets in, we could see ETH values dropping to $3,232, nullifying the optimistic forecast.
