Ethereum (ETH) Calm Before the Storm: Is the Rise Coming?

The bullish season that altcoin investors are eagerly awaiting may depend on Ethereum (ETH) funding rates.

CryptoQuant writer Burak Kesmeci said, “We will wait for the ETH funding rate to rise above 0.015 to see if the calm before the storm will be broken.” A higher funding rate indicates that market optimism is strengthening and traders are willing to hold their long positions.

“We need positive signals to see another parabolic rally in #Ethereum . Support from the futures market plays an important role in such rises,” Kesmeci added.

The CryptoQuant writer noted that Ether’s current funding rate is around 0.0056 percent, similar to its level in September 2023 before rising above 0.015. He stated that the funding rate moving back to this level is “vital to follow healthy increases in bull markets.”

According to CoinMarketCap, after the September 2023 interest rate hike, the price of ETH increased by 166 percent in the following six months, reaching $4,006 on March 13. However, ETH has not been able to close above $2,500, a critical level for investors, since September 2. Analysts say that the #ETH price is lagging behind Bitcoin.

Futures traders are skeptical of Ether reaching this level in the short term. According to CoinGlass data, if $$ETH reaches the $2,500 band, approximately $576.28 million worth of short positions will be liquidated. Both spot and futures traders are closely following the price structure in Ethereum.