Ethereum appears to have experienced a significant shift in its key metric. Specifically, a recent report by CryptoQuant analyst Burak Kesmeci underscored the potential implications of Ethereum’s current funding rates. The analyst suggested that historical patterns could indicate a substantial price increase, hinting that Ethereum might be on the cusp of a new rally.
Calm Before The Storm?
Funding rates are a crucial future market metric, reflecting the balance between long and short positions. A prolonged low funding rate can indicate market indecision or calm. Conversely, a sharp rise in the rate often precedes a strong price movement.
According to Kesmeci’s report, Ethereum’s funding rates have been fluctuating between 0.002 and 0.005, a relatively low level last observed in September 2023. Back then, the funding rate surged above 0.015, followed by a price rally from $1,500 to over $4,000.
Kesmeci delved into whether Ethereum’s funding rate in September 2024 could trigger a similar price movement. The current low funding rates have persisted for about a month, beginning in August, mirroring the period before last year’s significant price surge. Historically, September and the final quarter have been pivotal for crypto markets, often seeing increased trading volume and price gains as summer concludes.
However, Kesmeci noted, “I can’t say if history will repeat itself, but there’s certainly a rhythm to it. We will wait for Ether’s funding rate to rise above 0.015 to see if the calm before the storm breaks. A move above this level in funding rates is crucial for tracking healthy increases during bull markets.”
How Is Ethereum Faring So Far?
While Ethereum hasn’t seen a further decrease following its low of $2,197 last month, the asset hasn’t experienced a significant price increase in recent weeks. Instead, ETH has continued to consolidate within a specific range. After an attempt to create a new all-time high in March, trading above $4,000, ETH has seen a consistent decline and has remained below $3,000 since August.
Currently, the asset has declined by 2.7% in the past weeks and has seen a 0.7% increase in the past 24 hours. Nevertheless, ETH remains below the $3,000 mark, trading at $2,331 at the time of writing.
According to a recent post by renowned crypto analyst Alex Clay on X, ETH might have ended its correction. Clay noted, “A break above $2500 will confirm the beginning of the rally.”
ETH/USD
Imo we are at the end of the $ETH correction. Looking for some consolidation above the Key Zone + 200 MA & 200 EMA confluence. Break above $2500 will serve as confirmation of the beginning of the rally. #Ethereum turned out to be a heavy asset so $10k target is rather…
