Ethereum (ETH), although suffering a notable 15% drop over the last week, still finds itself buoyed by on-chain metrics suggesting a near-term rebound to potentially breach the $4,000 threshold. This analysis, in light of the broader crypto market downturn, underscores a persistent bullish sentiment surrounding the altcoin.

Ethereum's metrics indicate potential upside movements, with two key indicators signaling a rally on the horizon. First, ETH’s Estimated Leverage Ratio (ELR) suggests a robust inclination toward risk-taking, an early indicator of price resurgence potential.

As reported by CryptoQuant, the ELR currently positions at 0.53, pointing to a resilient risk appetite among traders.

The ELR reflects the leverage level used in trading on crypto exchanges, derived by comparing open interest to exchange reserves. A rising ELR for Ethereum indicates a strong conviction among traders about future price increases, as they appear eager to amplify returns through leverage.

Moreover, Ethereum's sustained positive funding rate presents another bullish signal. At present, CryptoQuant reports a funding rate of 0.016, which, despite recent price declines, remains positive across exchanges. This particular rate functions as a fee exchange between long and short positions in Ethereum's futures market, with a positive rate affirming optimistic market expectations.

Currently, Ethereum trades at $3,344, poised to capitalize on its bullish momentum. Should the trend continue, a rise past the $3,439 resistance could catalyze further gains, potentially paving the path toward the high-stakes $4,000 mark. Conversely, any prolonged market downturn could pressure ETH back to $3,232, challenging the current positive outlook.

While the market landscape remains fluid, Ethereum's risk-tolerant traders continue to drive sentiment, eyeing a strategic elevation despite the recent downturn.