Ethereum Funding Rates Signal Bullish Momentum, New ETH High Soon? (CryptoQuant)

Ether (ETH) has been on a constructive trajectory over the previous week, with the community’s dynamics exhibiting some enchancment. Crypto market analysts say there may be nonetheless room for progress.

Based on a report by CryptoQuant analyst Shayan, Ethereum futures market funding charges sign that ETH has not entered an overheated part. Therefore, the cryptocurrency could file extra positive factors within the coming weeks.

ETH Sees Optimistic Momentum

ETH hit a six-month excessive on November 28, rallying near $3,700, a degree final seen in early June. This surge to $3,680 led to an 18% weekly achieve for the second-largest cryptocurrency; nonetheless, the asset had retraced to $3,540 on the time of writing, recording a measly 5% weekly achieve.

Shayan mentioned ether’s rally and surge previous vital resistance ranges reignited investor optimism and sparked group discussions of a brand new all-time excessive by the top of the 12 months. Apparently, funding charges, which replicate investor sentiment within the futures market, recommend ETH might hit a brand new excessive by the top of 2024. This metric additionally highlights the potential for short-term dangers.

The spike in Ethereum funding charges reveals heightened demand for lengthy ETH positions; nonetheless, they continue to be beneath ranges recorded when ETH hit its all-time excessive of $4,890 three years in the past. This reveals that the cryptocurrency will not be but overvalued and doesn’t face the chance of a significant correction.

“Traditionally, sharp spikes in funding charges typically precede sudden market corrections or liquidation cascades, resulting in intervals of heightened volatility. Nevertheless, the present funding charge ranges indicate that there’s nonetheless room for additional progress in each value and sentiment earlier than such dangers change into vital,” Shayan acknowledged.

Ethereum Worth Outlook

Earlier this week, a CryptoPotato ETH value evaluation report acknowledged that ETH breaking by means of the resistance degree of $3,500 could possibly be the onset of a major rally. Nevertheless, the cryptocurrency nonetheless faces the potential for persevering with its consolidation part.

Whereas ether noticed a major surge above $3,500 on Wednesday, the cryptocurrency has remained above that degree since then, with a 4% plunge from $3,680. This means that ETH is presently consolidating. It stays to be seen if the coin will proceed consolidating or transfer upwards, pushed by flows into the U.S. spot Ethereum exchange-traded funds market.