Ethereum futures are generating renewed optimism among traders as positive funding rates indicate a shift toward bullish sentiment, according to CryptoQuant analyst ShayanBTC. Funding rates measure the demand balance between buyers and sellers in futures contracts, with positive rates suggesting more aggressive buying activity.
This recent uptick points to growing buyer interest in Ethereum, the second-largest cryptocurrency by market capitalization. However, while these positive funding rates hint at market confidence, they still fall short of the levels seen in early 2023, when Ethereum experienced a major rally.
Ethereum Funding Rates Surge
In March of that year, funding rates surged as Ethereum’s price climbed, reflecting robust market support. ShayanBTC points out that the current positive rates may not be strong enough to ignite a breakout but notes that an increase could signify deeper market conviction in Ethereum’s potential for sustained gains.
Ethereum’s price recently reached a high of $2,719, marking a steady recovery in recent weeks. Yet, a correction soon followed, with the price dropping by 5.1% to around $2,550. Daily trading volume also dipped during this period, falling from over $24 billion to under $20 billion. This decrease in volume and price suggests that while sentiment remains positive, the market may need stronger signals of demand to maintain an upward trend.
Despite these fluctuations, some analysts are maintaining a bullish outlook. Notably, crypto analyst Javon Marks recently identified “Hidden Bull Divergence” patterns and an RSI breakout in ETH chart, both of which are technical signals commonly associated with upward momentum. Marks predicts that ETH price could rise by as much as 75%, potentially reaching a target of $4,811.
Analysts are watching funding rates closely, as they provide insight into whether demand can sustain current price levels or drive Ethereum toward higher valuations. While Eth has shown resilience in recent trading, analysts like ShayanBTC and Marks suggest that a combination of stronger funding rates and technical indicators will be crucial for ETH to secure lasting gains.
