Ethereum's price is exhibiting promising signs of a bullish continuation after reclaiming a crucial level. Yet, for it to chart a course toward a new all-time high, significant market developments are still required.

Currently, on the daily chart, Ethereum's price has bounced back from the pivotal $3,200 support level and has surged past $3,500. Maintaining stability above this threshold could trigger a rally toward the $4,000 level in the near future.

Furthermore, with the Relative Strength Index (RSI) displaying values above the 50% mark, the market momentum has turned bullish, enhancing the likelihood of this upward scenario.

A closer examination of the 4-hour chart provides a detailed insight into recent price behavior, along with potential concerns. While the market has decisively broken above the $3,500 level, a bearish divergence between recent price peaks and the RSI indicator emerges as a cautionary signal. This could potentially result in a pullback and retesting of the $3,500 level before further upward movement in the coming days.

Although Ethereum's price has remained above the $3,000 mark over recent months, investor optimism has been exceedingly high regarding the possibility of setting a new all-time high. However, this optimism has also instigated a correction, impeding the asset's ascent.

Examining the Ethereum funding rates, which track the market sentiment in the futures realm, it becomes apparent that the rates were exorbitantly high as the price neared $4,000. Subsequent long liquidation cascades induced a correction and consolidation phase. Recently, funding rates have notably decreased, reflecting a cooling sentiment in the futures market. If the spot market sees sufficient demand, this tempered investor sentiment could lead to a sustainable rally in the ensuing weeks.