This paper deals with the estimation of the neuronal activation and some unmeasured physiological information using the Blood Oxygenation Level Dependent (BOLD) signal measured using functional Magnetic Resonance Imaging (fMRI). We propose to use an observer-based approach applied to the balloon hemodynamic model. The latter describes the relation between the neural activity and the BOLD signal. The balloon model can be expressed in a nonlinear state-space representation where the states, the parameters and the input (neuronal activation), are unknown. This study focuses only on the estimation of the hidden states and the neuronal activation. The model is first linearized around the equilibrium and an observer is applied to this linearized version. Numerical results performed on synthetic data are presented.