While Ethereum currently rests at a critical support region with significant potential demand, analyzing the futures market sentiment is essential for forecasting its next moves. The chart highlights the Ethereum funding rate metric, which indicates whether buyers or sellers are executing orders more aggressively. Positive funding rates suggest bullish sentiment, whereas negative rates imply bearish sentiment.
The funding rate metric recently showed a notable increase after a period of slight declines, which coincided with a corrective phase in Ethereum’s price. This uptick suggests that demand is present near the crucial support level of $3.3K, potentially halting further downward pressure and initiating a bullish reversal. If the funding rate metric continues its upward trend, it indicates that the futures market sentiment is turning bullish, making a mid-term bullish reversal more likely.
Written by ShayanBTC