As a seasoned analyst with over two decades of experience in the financial markets, I find myself intrigued by Burak Kesmeci’s latest report on Ethereum’s funding rates. Having witnessed numerous market cycles and trends, I can confidently say that history does indeed have a tendency to rhyme rather than repeat exactly.
It seems that Ethereum has undergone a significant change in one of its key indicators, as suggested by a recent analysis from a crypto quant expert, Burak Kesmeci. Specifically, he emphasized the possible impact of the current funding rates on Ethereum.
As I delve into the data, I’ve noticed striking resemblances between past market trends and the current state of Ethereum. Given these parallels, it seems plausible that we could be on the brink of another price surge for this cryptocurrency.
Calm Before The Storm?
The rate of funding in the market is crucial as it reflects the equilibrium between long-term and short-term investments. A prolonged period of low funding rates might suggest market uncertainty or tranquility, whereas a sudden increase could typically foretell a significant price shift.
As per Kesmeci’s report, Ethereum’s funding rates have been fluctuating between approximately 0.002 and 0.005, a level that hasn’t been this low since September 2023. However, after this period, the funding rate rose sharply above 0.015, which was followed by a significant price surge from around $1,500 to over $4,000.
The analyst delved into the possibility that the funding rate of Ethereum in September 2024 might indicate a comparable price trend. For roughly a month now, starting from August, the current funding rates have remained relatively low.
In essence, this scenario seems reminiscent of the build-up prior to last year’s substantial price spike. Traditionally, September and the fourth quarter have carried significant importance for cryptocurrency markets. During these periods, we often observe heightened trading activity and price increases as the summer wanes, making them crucial times in the market cycle.
However, Kesmeci noted:
It’s uncertain whether history will reoccur, but there seems to be a pattern to it. We’ll observe if Ether’s funding rate surpasses 0.015 to determine if the tranquil period before a potential storm is over. A rise above this level in funding rates is essential for monitoring significant growth during bullish market conditions.
How Is Ethereum Faring So Far?
Even though Ethereum hasn’t dropped any lower since it hit $2,197 last month, it hasn’t experienced significant price growth in recent weeks either.
After a brief surge that took it close to a record high of over $4,000 in March, Ethereum (ETH) has been holding steady within a particular price range. Since then, its value has consistently dropped and it has not gone above the $3,000 mark since August.
To date, the value of this asset has dropped by approximately 2.7% over the recent weeks. Interestingly, there’s been a slight increase of around 0.7% in the last 24 hours. Despite this minor uptick, it’s still hovering below the $3,000 threshold, with a current trading price of $2,331 as we speak.
As a researcher delving into cryptocurrency analysis, I’ve come across an intriguing perspective from Alex Clay, a well-respected analyst in our field. He suggests that Ethereum (ETH) may have concluded its correction phase. According to him, if ETH manages to surpass the $2500 mark, this would serve as confirmation of the onset of an upward trend or 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
If Ethereum surpasses $2500, it could indicate the start of a bullish rally and a potential target price of $10,000.
— Alex Clay (@cryptclay) September 9, 2024
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2024-09-13 09:40