Ethereum now appears to have seen a noticeable change in its main metric. In particular, as CryptoQuant analyst Burak Kesmeci recently reported, illuminated the potential significance of current Ethereum funding rates.

The analyst noted that similar patterns have resulted in significant price increases in the past, suggesting that Ethereum could be on the verge of a recent surge.

The composed before the storm?

Funding rates are a key forward market indicator, indicating the balance between long and compact positions. When the funding rate remains low for an extended period of time, it can signal indecision or market composed, but when the rate rises sharply, it often precedes a robust price move.

According to a report by Kesmeci, Ethereum funding rates have been hovering between 0.002 and 0.005, which is a relatively low level last seen in September 2023. The funding rate then rose above 0.015, followed by a price rally from $1,500 to over $4,000.

The analyst further investigated whether the Ethereum funding rate in September 2024 could signal a similar price move. The current low funding rates have been in place for about a month, starting in August.

This situation mirrors the period leading up to the significant price enhance last year. September and the last quarter have historically been key times for cryptocurrency markets, often seeing an enhance in trading volume and price increases towards the end of summer.

However, Kesmeci noted:

I can’t say if history will repeat itself, but it certainly has its rhythm. We’ll wait for Ether’s funding rate to rise above 0.015 to see if the lull before the storm ends. Getting above this funding rate level is key to tracking hearty gains during a bull run.

How is Ethereum doing?

Although Ethereum has not declined in value since hitting a low of $2,197 last month, there has been no significant price growth for the asset in recent weeks.

Instead, ETH continues to consolidate within a range. After attempting to set a recent all-time high in March, trading above $4,000, ETH has seen a steady decline since then and has remained below $3,000 since August.

The asset is down 2.7% so far in the past week and has seen a 0.7% enhance in the last 24 hours. However, the asset remains below the $3,000 level, currently trading at $2,331 at the time of writing.

According to a recent post by renowned cryptocurrency analyst Alex Clay on X, ETH may have completed its correction. Clay noted that “a break above $2,500 will confirm the start of a rally.”

#ETH/USD

In my opinion, we are at the end $ETH adjustment

We expect some consolidation above Key Zone + 200 MA and connection of 200 EMA

Breaking the $2,500 level will confirm the beginning of the rally#Ethereum it turned out to be a tough asset, so the $10k goal is rather… photo:twitter.com/jjGPPUHWE3

— Alex Clay (@cryptclay) September 9, 2024

Featured image created with DALL-E, chart from TradingView