As the second-largest crypto by market capitalization, Ethereum has garnered notable attention following an uptick in funding rates—a measure used to gauge the demand balance between buyers and sellers in futures contracts.
Rise In Funding Rates To Drive Breakout?
Positive funding rates imply that there are more aggressive buyers, indicating bullish sentiment, whereas negative rates suggest more sellers and a bearish outlook. This trend reflects a favorable market sentiment for Ethereum, albeit with some caution regarding its sustainability.
This difference may indicate that, although sentiment is shifting, the momentum may need further strengthening to ignite a sustained rally.
Shayan observations suggest that while traders lean towards a positive outlook on Ethereum, this sentiment must translate into higher funding rates to indicate a stronger conviction in the asset’s potential price rise. The analyst wrote:For Ethereum to overcome key resistance levels and sustain an upward trajectory, a higher funding rate would signal increased buying interest and confidence from futures traders. Higher funding rates would not only confirm participants’ willingness to go long on Ethereum but would also add upward pressure on the price, potentially leading to a stronger and more sustained rally.
Ethereum Market Performance
Ethereum has seen a noteworthy recovery in price in recent weeks. The asset has recorded a price uptick rising to as high as $2,719 on Wednesday.
However, following the asset reaching this price mark comes a noteworthy correction. Over the past day, ETH has decreased by 5.1%, shedding some of the profits in the past few days.
At the time of writing, the asset trades at $2,550 from its 24-hour low of $2,548. ETH’s daily trading volume has also followed the same trend, dropping from above $24 billion on Wednesday to below $20 billion. Regardless of this performance, some analysts remain bullish on ETH.(Ethereum), coming off of multiple confirmed Hidden Bull Divergence patterns and an RSI breakout, can be setting here for a continuation towards the $4811.6 target! With prices up about +120% since breaking out, a run looks to already be in-effect, so another +75% move to… — JAVON⚡️MARKS (@JavonTM1)Featured image created with DALL-E, Chart from TradingView