The post Ethereum Futures Show Signs of Optimism: Will Positive Funding Rates Drive a Breakout? appeared on BitcoinEthereumNews.com.

Ethereum recent performance in the futures market is generating optimism among traders and analysts, according to insights shared by CryptoQuant analyst ‘ShayanBTC.’ As the second-largest crypto by market capitalization, Ethereum has garnered notable attention following an uptick in funding rates—a measure used to gauge the demand balance between buyers and sellers in futures contracts. Rise In Funding Rates To Drive Breakout? Positive funding rates imply that there are more aggressive buyers, indicating bullish sentiment, whereas negative rates suggest more sellers and a bearish outlook. This trend reflects a favorable market sentiment for Ethereum, albeit with some caution regarding its sustainability. Despite this renewed optimism, the current positive funding rates for Ethereum, as highlighted by Shayan are yet to match levels seen in early 2023, when the cryptocurrency experienced a marked bullish trend in March. This difference may indicate that, although sentiment is shifting, the momentum may need further strengthening to ignite a sustained rally. Shayan observations suggest that while traders lean towards a positive outlook on Ethereum, this sentiment must translate into higher funding rates to indicate a stronger conviction in the asset’s potential price rise. The analyst wrote: For Ethereum to overcome key resistance levels and sustain an upward trajectory, a higher funding rate would signal increased buying interest and confidence from futures traders. Higher funding rates would not only confirm participants’ willingness to go long on Ethereum but would also add upward pressure on the price, potentially leading to a stronger and more sustained rally. Ethereum Market Performance Ethereum has seen a noteworthy recovery in price in recent weeks. The asset has recorded a price uptick rising to as high as $2,719 on Wednesday. However, following the asset reaching this price mark comes a noteworthy correction. Over the past day, ETH has decreased by 5.1%, shedding some of…

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Filed under: News - @ November 1, 2024 8:26 am