As a seasoned crypto investor with over a decade of experience navigating the volatile world of digital assets, I find the recent analysis on Ethereum’s potential price recovery intriguing. The shift in the 30-day moving average of ETH funding rates, as highlighted by Shayan, is indeed an early indication that could bode well for Ethereum investors.
According to current information from its futures market, it looks like Ethereum, the second most valuable cryptocurrency in terms of market cap, might be showing signs of an upcoming price increase.
Based on the analysis of Shayan, a CryptoQuant expert, there appears to be a significant change in Ethereum’s futures market which might suggest a potential increase in its price in the near future.
The key to this analysis lies in the 30-day moving average of Ethereum’s funding rates, which has started to show a slight bullish trend after a period of decline.
Futures Market Suggests Ethereum’s Price Breakout Is Near
In the context of perpetual Ethereum futures, the funding rate serves as a significant signpost, revealing whether more traders are generally purchasing or offloading Ethereum within the market.
A positive funding rate signals more aggressive buying activity, whereas a negative rate suggests that sellers are in control. Shayan notes that Ethereum’s funding rates have recently experienced an uptick, reflecting an increase in buyer activity, which has coincided with a broader market rebound.
This progression implies a possible change in investor attitudes towards Ethereum, leaning towards optimism, which could lead to additional price growth. Shayan pointed out:
Lately, the 30-day moving average for ETH funding rates has subtly leaned towards optimism following a lengthy downtrend. This bullish trend aligns with a broader market recovery and a rise in Ethereum’s value, hinting at a potential shift in investor attitudes.
Shayan emphasizes that the recent shift could be a sign of an impending price surge for Ethereum. The analyst believes that for Ethereum to continue its growth trend, it is crucial for the funding rates to remain positive, suggesting continuous demand in the futures market.
If funding rates were to decrease and become negative once more, it might indicate a halt or possibly a reversal in the upward trend of Ethereum’s price.
Ethereum Market Performance
To date, Ethereum hasn’t managed to push higher significantly after it surpassed the $2,600 threshold. Despite dipping below that value today, Ethereum has seen a rise of over 10% in the last seven days.
At the moment of this writing, Ethereum’s current market trade value stands at approximately $2,589. However, the perpetual market appears to be indicating a more bullish trend than what we are currently seeing in its performance.
Regardless, given that ETH has broken above the $2,100, analysts such as Crypto Patel have suggested further upward move for the asset. According to Patel, a break above this level makes the next target $5,500 to $6,000.
$ETH Chart Update
Ethereum has seen a robust rebound near the $2100 mark (a significant support level). As we look ahead, I anticipate that Ethereum’s next destination could potentially reach around $6000, with the immediate resistance at $5500-$6000. Meanwhile, in the long term, potential targets for Ethereum stretch from $8000 to $10,000.
— Crypto Patel (@CryptoPatel) September 21, 2024
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2024-09-26 05:47