Ethereum's recent price movements have been significantly influenced by the futures market, with the past few weeks underscoring this impact. Analyzing futures market sentiment provides valuable insights into potential price trends.

The Ethereum Funding Rates metric, which measures whether buyers or sellers are more aggressive in placing orders, is a key indicator. Positive values reflect bullish sentiment, while negative values indicate bearish outlooks.

Recently, funding rates have been trending downward, reaching their lowest levels. This consistent decline suggests a prevailing bearish sentiment and a lack of buying interest. For Ethereum to recover and approach its all-time highs, demand in the perpetual markets must increase. If the current trend persists, further price declines are likely in the mid-term.