Ethereum Futures Show Signs of Optimism: Will Positive Funding Rates Drive a Breakout?
November 01 2024 - 4:00AM
NEWSBTC
Ethereum recent performance in the futures market is generating
optimism among traders and analysts, according to insights shared
by CryptoQuant analyst ‘ShayanBTC.’ 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.
Related Reading: Ethereum Holds Key Support To Set A $6,000 Target
– Analyst 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. Despite this renewed optimism, the current positive
funding rates for Ethereum, as highlighted by Shayan are yet to
match levels seen in early 2023, when the cryptocurrency
experienced a marked bullish trend in March. 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. Related Reading: Ethereum Price Consolidates Gains:
Is It Ready for Another Push? For instance, renowned crypto analyst
Javon Marks has recently highlighted that Ethereum is coming off
“confirmed Hidden Bull Divergence patterns and an RSI breakout,”
which sets its price to climb by 75% to reach the $4811.6 target.
$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… https://t.co/qa7K8qGBT4 pic.twitter.com/PrPDxfPzPa —
JAVON⚡️MARKS (@JavonTM1) October 30, 2024 Featured image created
with DALL-E, Chart from TradingView
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