Shiba Inu price has rebounded 22% from its 14-day low of $0.00002400 recorded during the crypto market dip on Tuesday. With the Ethereum ecosystem attracting rapid capital inflows, is $SHIB
on the verge of a major breakout? 
Shiba Inu enters 22% rebound as Ethereum bulls regain momentum
Prior to the crypto market correction earlier this week, the Ethereum ecosystem had received a major boost from proposed vital policy changes by a Trump transition committee.
Following the nomination of crypto-friendly Paul Atkins as replacement for outgoing Securities & Exchange Commission (SEC) Chair Gary Gensler, Bernstein analysts hinted that the incoming Trump administration could approve staking yield for cryptocurrency ETFs.
Within days of the Bernstein report, Ethereum ETFs pulled in their highest single-day inflow of $428 million on December 2, driving $ETH
prices to above the $4,000 mark for the first time since November 2021.
As historically observed, these unusually high ETH capital inflows rapidly spread bullish tailwinds across prominent mega-cap tokens hosted within the Ethereum ecosystem, propelling Shiba Inu prices higher as well as $PEPE
, which raced to new all-time highs on December 4.
The recovery traction observed in the last 24 hours signals the continuation of the bullish trend observed in the first week of December.
The chart above shows a close correlation between SHIB price recovery and Ethereum’s market-leading movements in recent days. While Shiba Inu price gained 21.87%, moving from $0.00002700 to $0.00002900, Ethereum price also rose 13.5% to retest the $3,900 mark on Thursday. Derivatives traders place large bets on SHIB breakout
As the largest memecoin hosted on the Ethereum blockchain, more SHIB appears positioned for more gains if the ETH inflows persist ahead of Trump’s inauguration. Recent trends observed in the Shiba Inu derivatives market shows the majority of traders are now placing large long bets, anticipating a continuation of the bullish trend.
Affirming this stance, Coinglass’s funding rate chart below tracks the fees paid between bulls and short traders, providing insights on dominant investors’ sentiment surrounding Shiba Inu’s short-term price outlook.
The chart above highlights two key bullish signals from Shiba Inu derivatives traders. First, while SHIB prices surged 21.9%, the open interest increased by only 2%, rising modestly from $102 million to $105 million. This indicates that the ongoing Shiba Inu price rebound is largely driven by spot purchase with limited speculative activity in the derivatives market.
During the same period, Shiba Inu's funding rate flipped from -0.02 to positive readings of +0.02, representing a remarkable 200% increase. This shift reflects growing bullish sentiment among derivatives traders, with more traders paying premiums to maintain long positions.
Together, these metrics suggest that Shiba Inu price is poised to sustain its upward momentum if current market conditions persist.