Ethereum Funding Rates Approaches the Critical Bull Threshold of 0.02
Historically, Ethereum Funding Rates reaching the 0.02 level has marked a crucial threshold before parabolic bull rallies. Over the past four years, during four significant uptrends, Funding Rates held above 0.02, supporting gains in the spot market.
Let's give some examples:
July 2020: Funding Rates > 0.02, and Ethereum surged by over 100% in approximately 50 days.
November 2020: Funding Rates stayed above 0.02, Ethereum rallied over 1000% in around 350 days.
August 2021: Funding Rates remained > 0.02, and Ethereum gained nearly 90% in around 100 days.
October 2023: Funding Rates stayed above 0.02, and Ethereum increased by 150% over about 150 days.
Conclusion:
Sustainable bull rallies and robust price gains rely not only on spot purchases but also on long positions in the futures market. Data shows that bull rallies backed by futures trading provide investors with significantly larger opportunities.
Therefore, if Ethereum Funding Rates remain above 0.02, this could be a promising sign for Ethereum and altcoin investors alike. New on-chain alerts are ready—stay updated by following these alerts in the preset alerts section.
Written by burakkesmeci
