Ethereum’s recent performance on the futures market is creating optimism among traders and analysts, he said insights shared by CryptoQuant analyst ‘ShayanBTC.’
As the second-largest cryptocurrency by market capitalization, Ethereum has attracted notable attention following a rise in funding rates – a metric used to measure the balance of demand between buyers and sellers in futures contracts.
Increase financing rates to stimulate breakthrough?
Positive financing rates imply more aggressive buyers, indicating bullish sentiment, while negative rates indicate more sellers and a bearish outlook. This trend reflects favorable market sentiment for Ethereum, albeit with some caution regarding its sustainability.
Despite this renewed optimism, the current positive funding rates for Ethereum, as highlighted by Shayan, are not yet at the levels seen in early 2023, when the cryptocurrency was on a clear bullish trend in March.
This difference may indicate that while sentiment is shifting, momentum may need to strengthen further to ignite a sustainable rally.
Shayan observations suggest that while traders are leaning toward a positive view of Ethereum, this sentiment should translate into higher funding rates to indicate stronger conviction of the asset’s potential price appreciation. The analyst wrote:
If Ethereum were 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 Ethereum, but would also put upward pressure on the price, potentially leading to a stronger and more sustainable rally.
Ethereum Market Performance
Ethereum has seen a remarkable price recovery in recent weeks. The asset posted a price increase as high as $2,719 on Wednesday.
However, after the asset reaches this price level, a notable correction follows. Over the past day, ETH has fallen 5.1%, wiping out some of the gains made in recent days.
At the time of writing, the asset is trading at $2,550, off a 24-hour low of $2,548. ETH’s daily trading volume also followed the same trend, falling from over $24 billion on Wednesday to less than $20 billion. Regardless of this performance, some analysts remain bullish on ETH.
For example, the well-known crypto analyst Javon Marks recently did this marked that Ethereum is coming out of “confirmed Hidden Bull Divergence patterns and an RSI breakout,” which will see its price rise 75% to reach the $4811.6 target.
$ETH (Ethereum), coming off multiple confirmed Hidden Bull Divergence patterns and an RSI breakout, could prepare for a continuation towards the $4811.6 target here!
With prices up around +120% since the breakout, it looks like a run is already in effect, so another +75% goes to… https://t.co/qa7K8qGBT4 pic.twitter.com/PrPDxfPzPa
— JAVON
BRANDS (@JavonTM1) October 30, 2024
Featured image created with DALL-E, Chart from TradingView
