Evaluation of Ethereum's Value: Is a Market Correction Imminent Following a 42% Weekly Increase?

Ethereum has seen a significant increase recently, hitting a key resistance area at the $2.6K mark. This level aligns with the 200-day moving average and a previously broken lower boundary of a multi-month ascending trend, indicating a strong resistance cluster.

Consequently, a temporary consolidation or correction may be required to stabilize the market and build enough momentum for a potential breakout. On the other hand, Ethereum's aggressive buying momentum on the lower timeframe suggests an intention to target all-time highs in the coming months, despite reaching a key supply zone.

Examining the futures market's funding rates metric provides insight into Ethereum's surge, suggesting the uptrend is organic and not driven by excessive leverage. However, for the bullish momentum to be confirmed, funding rates will need to increase, reflecting greater confidence and aggressive positioning by futures traders.