Ethereum Funding Rates Hit Key Bullish Level – Price Surge Ahead?
09 Novembre 2024 - 4:30PM
NEWSBTC
Following Donald Trump’s victory in the US presidential election on
November 5, Ethereum (ETH), alongside the general cryptocurrency
market, has experienced notable price gains. In particular, the
second-largest cryptocurrency has witnessed its value increase by
24.31% in the past four days as it approaches a crucial $3,000
resistance zone. Related Reading: Ethereum Analyst Sees Altseason
Potential As BTS Is Still Outpacing ETH – Time To Buy Altcoins?
Ethereum Prepares For Potential Surge As Funding Rates Hit 0.02
Amidst the recent price rally in the last week, crypto analyst
Burak Kesmeci notes that Ethereum funding rates have now climbed
above 0.02, which can be described as a strong bullish
signal. Generally, funding rates are periodic payments made
between traders in the perpetual future contracts during funding
intervals. A funding rate of 0.02 indicates long position
domination and demands that long traders pay 2% of the notional
value of their position to short traders in order to maintain the
price of perpetual contracts close to the spot market price of an
asset. According to Kesmeci, long positions in futures
markets are crucial to initiating strong bull rallies in the same
vein as spot market acquisitions. Interestingly, historical
data as shared by the analyst shows that Ethereum has consistently
experienced a major price uptrend whenever funding rates have risen
and stayed above 0.02. For context, when funding rates hit 0.02 on
July 1, 2020, the ETH market recorded a price gain of over 100% in
50 days. Likewise, on November 2, 2020, Ethereum also embarked on a
bullish course surging by over 1000% in 350 days. Most
recently, Kesmeci notes that the altcoin’s price grew by 150% in
150 days as the funding rates crossed 0.02 on October 4, 2023.
Therefore, the analyst postulates ETH may be primed for a robust
bullish run in the coming days. In addition, this potential uptrend
is expected to influence other altcoin markets due to Ethereum’s
position as the largest altcoin by market cap. Related Reading:
Ethereum L2 Project Spark Launches On-Chain Order Book On Fuel
Network To Enhance Trading ETH Meets Crucial $3,000 Resistance
Level With Ethereum’s price hovering above $2,900, the token is set
to soon encounter a major resistance at the $3,000 price
mark. According to a report by blockchain analytics company
IntoTheBlock, this particular resistance level which can be
described as a historically significant demand zone is normally
expected to provide much opposition to Ethereum’s ascent.
However, the current bullish momentum in the ETH market is likely
to subdue this resistance, allowing the asset to maintain its
current rally. If Ethereum breaks beyond $3,000, the altcoin could
attain a $4,000 price target. Albeit a rejection would result in
ETH trading as low as $2,400. At the time of writing, Ethereum
continues to trade at $2,970 following a 0.98% gain in the last
day. Featured image from Mandrex, chart from Tradingview
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