Ethereum’s Low Funding Rates Signal ‘Full-Fledged’ Rally Ahead: Analyst
Main Idea
Ethereum (ETH) shows strong bullish signals with institutional accumulation and steady demand, suggesting potential for further price increases despite being below its all-time high.
Key Points
1. ETH is trading at $3,800, 24% below its all-time high, but indicators like funding rates and institutional accumulation suggest continued upward momentum.
2. Funding rates remain near pre-rally lows, unlike previous overheated conditions, indicating a healthier market structure.
3. Heavyweight investors acquired 220,000 ETH ($850M) in 48 hours, boosting their holdings to a record 23.5% of ETH's supply, reducing market liquidity and supporting price increases.
4. Spot ETH ETFs attracted $5 billion in 17 days, adding steady demand, while exchange balances dropped to a near-decade low of 19 million ETH.
5. Analysts identify $4,100 as a key breakout level that could propel ETH toward its 2021 all-time high, despite short-term overbought signals.
Description
Ethereum’s ten-year milestone has been marked not just by reflection but by a steady rally that has investors bracing for what could be the cryptocurrency’s next big breakout. With ETH trading at $3,800 at press time, still 24% below its all-time high, pseudonymous CryptoQuant analyst CoinCare says its subdued futures funding rates and deep-pocketed accumulation suggest the uptick is far from over. The Funding Rate Divergence According to CoinCare, Ethereum’s ongoing four-month rally is quite si...
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