Ethereum’s overall bullish trend is at risk as Funding Rates, a key indicator of derivatives market demand, show mixed signals. While rates spiked midway through the rally, their sharp decline after rejection at the $4K resistance highlights waning trader commitment.
Initially delayed, the Funding Rates’ rise indicated cautious optimism. However, their subsequent notable drop signals reduced demand, weakening Ethereum’s bullish momentum. Without renewed trader confidence, sustaining the rally becomes challenging. The $3K support level is vital and holding above it could stabilize the market and reignite bullish momentum. A breach, however, may lead to intensified selling and a deeper correction.
Overall, Ethereum’s outlook depends on reclaiming higher Funding Rates and defending $3K. These factors will determine whether the market resumes its uptrend or faces further corrections.
Written by ShayanBTC
