According to Ethereum, the recent results on the futures market are confident among traders and analysts observations shared by CryptoQuant analyst “ShayanBTC”.

As the second-largest cryptocurrency by market capitalization, Ethereum has gained significant attention following an escalate in funding rates, a metric used to measure the balance of demand between buyers and sellers in futures contracts.

Will the escalate in financing rates lead to a breakthrough?

Positive financing rates mean there are more aggressive buyers, indicating bullish sentiment, while negative rates suggest more sellers and a bearish outlook. This trend reflects favorable market sentiment for Ethereum, albeit with some caution regarding its sustainability.

Despite this renewed optimism, Ethereum’s current positive funding rates, as Shayan highlighted, are not yet in line with the levels seen in early 2023, when the cryptocurrency experienced a clear upward trend in March.

This difference may indicate that while sentiment is changing, momentum may need to be further strengthened to spark sustained growth.

Shayan’s observations suggest that while investors are leaning towards positive sentiment towards Ethereum, this sentiment needs to translate into higher funding rates to indicate stronger confidence in the asset’s potential price appreciation. Analyst wrote:

For Ethereum to overcome key resistance levels and maintain its upward trajectory, a higher funding rate would mean increased buying interest and confidence from futures traders. Higher funding rates would not only confirm participants’ willingness to go long Ethereum, but would also escalate upward pressure on the price, potentially leading to stronger and more sustained growth.

Ethereum market performance

Ethereum has seen a noticeable price escalate in recent weeks. On Wednesday, the price of this asset increased to $2,719.

However, once the asset reaches this price level, a noteworthy correction occurs. ETH has fallen 5.1% over the past day, shedding some of its gains over the past few days.

At the time of writing, the asset is trading at $2,550 off a 24-hour low of $2,548. ETH’s daily trading volume also followed the same trend, dropping from over $24 billion on Wednesday to below $20 billion. Regardless of these results, some analysts remain bullish on ETH.

For example, recently renowned cryptocurrency analyst Javon Marks highlighted that Ethereum is falling out of “confirmed Hidden Bull Divergence and RSI Breakout patterns,” causing its price to jump 75% to reach the $4,811.6 target.

$ETH (Ethereum), emerging from multiple confirmed Hidden Bull Divergence patterns and an RSI break, could set up a continuation towards the $4,811.6 target here!

With prices up around +120% since the breakout, the round appears to be in place, so another +75% moves to… https://t.co/qa7K8qGBT4 pic.twitter.com/PrPDxfPzPa

— JAVONSIGNS (@JavonTM1) October 30, 2024

Featured image created with DALL-E, chart from TradingView