Ethereum’s Low Funding Rates Signal ‘Full-Fledged’ Rally Ahead: Analyst

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.