Ethereum’s recent performance in the futures market has generated optimism among traders and analysts, according to Visions Shared by CryptoQuant Analyst “ShayanBTC”.
As the second-largest cryptocurrency by market cap, Ethereum has received notable attention following a rise in funding rates – a metric used to measure the balance of demand between buyers and sellers in futures contracts.
Higher financing rates to drive penetration?
Positive financing rates indicate more aggressive buyers, indicating bullish sentiment, while negative rates indicate more sellers and a bearish outlook. This trend reflects positive market sentiment towards Ethereum, albeit with some caution regarding its sustainability.
Despite this renewed optimism, Ethereum’s current positive funding rates, as highlighted by Cheyenne, have yet to match the levels seen in early 2023, when the cryptocurrency saw a notable uptrend in March.
This divergence may indicate that despite the shift in sentiment, momentum may need more steam to ignite a sustained rally.
Cheyenne notes that while traders are leaning toward a positive outlook on Ethereum, this sentiment should translate into higher funding rates to indicate stronger conviction in the asset’s potential price appreciation. The analyst wrote:
For Ethereum to overcome key resistance levels and maintain an upward trajectory, a rising funding rate will signal increased buying interest and confidence from futures traders. High funding rates will not only confirm participants’ willingness to buy Ethereum, but will also add upward pressure on the price, potentially leading to a stronger and more sustainable rally.
Ethereum market performance
The price of Ethereum has seen a notable recovery in recent weeks. The asset recorded a price increase to $2,719 on Wednesday.
However, after the asset reaches this price mark comes a noteworthy correction. Over the past day, ETH has fallen by 5.1%, losing some gains in the last few days.
At the time of writing, the asset is trading at $2,550 from a 24-hour low of $2,548. ETH’s daily trading volume also followed the same trend, falling from more than $24 billion on Wednesday to less than $20 billion. Regardless of this performance, some analysts remain bullish on ETH.
For example, famous cryptocurrency analyst Javon Marks recently did just that Highlight Ethereum is breaking out of “confirmed hidden bull divergence patterns and RSI breakout,” making its price rise 75% to target $4,811.6.
$ Ethereum (Ethereum), which broke out of several confirmed hidden bull divergence patterns and an RSI breakout, could be set up here to continue towards the $4811.6 target!
With prices up nearly +120% since the breakout, it looks like the run has already taken effect, so a move back +75% to… https://t.co/qa7K8qGBT4 pic.twitter.com/PrPDxfPzPa
– Javon
Marx (@JavonTM1) October 30, 2024
Featured image created with DALL-E, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.