As a seasoned crypto investor with over half a decade of experience under my belt, I find myself intrigued by the current state of Ethereum (ETH). The price action has been somewhat range-bound recently, and while it’s not exactly what I’d call thrilling, it does present an opportunity for those who know how to read the market.
Over the past 24 hours, Ethereum (ETH) has been fluctuating within the range of $2,200 – $2,500 without any significant triggers. If investor sentiment towards ETH improves slightly and gains momentum, it could potentially propel the price to reach $3,000, setting the stage for a potential parabolic surge. Currently, Ethereum has a 24-hour trading volume of approximately $10.05 billion, and its market cap stands at around $282.46 billion. The 24-hour volatility is -0.8%.
On September 12, as noted by analyst Burak Kesmeci, we’ll keep an eye out for Ether’s funding rate climbing over 0.015 to determine if the tranquility before a potential storm has ended.
The Ethereum funding rate is a small market fee aligning the spot price and futures while stabilizing the perpetual contracts. A higher funding rate usually leads to stronger market optimism and shows that traders are willing to spend more to hold their positions longer. Speaking on the development, Kesmeci added:
For a new upward surge (parabolic increase) in Ether, it’s crucial that we receive optimistic indicators. The backing from the futures market is key to fueling these market upswings.
According to market analyst Kesmeci, Ethereum’s current funding rate, about 0.0056%, has gone back to levels similar to those in September 2023. This is a return after the rate climbed above 0.015% last year. Kesmeci underscores that this rate returning again is significant for tracking steady growth during bull markets, implying it might indicate possible positive momentum for Ether.
Ethereum Historical Performance After Funding Rate Rise
After a significant increase in the funding rate in September 2023, the value of Ethereum soared beyond 166% within the subsequent six months, peaking at approximately $4,006 by March of this year.
Over the past month following Ethereum 2’s launch, the ETH price hasn’t breached $2,500 – a significant level for traders. Contrastingly, ETH’s performance has been lackluster compared to Bitcoin over the last two months, even though the debut of spot Ether ETFs occurred in July this year.
As a crypto investor, I’m not so sure if ETH will hit those heights in the short term, as there seems to be some skepticism among futures traders. However, should it manage to do so, an impressive $576.28 million worth of short positions could potentially be liquidated, based on CoinGlass data. In the past, ETH has reached its all-time high of $4,810 in September 2021. Interestingly, TradingView data suggests that Ethereum’s market dominance was approximately 3.78% higher compared to its current level of 14.20%. This means we might be looking at a significant growth if we compare the past and present market dominance levels.
According to Coinspeaker’s report, these institutions maintain a positive outlook towards Ethereum and feel that it could attract more attention if it had stronger marketing strategies and a more compelling value proposition.
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2024-09-13 11:33