Ether has been experiencing a positive trend recently, with the network dynamics showing some improvement. Although there is still room for growth, Ethereum futures market funding rates suggest that ETH has not entered an overheated phase, which implies the possibility of additional gains in the coming weeks.
Ethereum’s rally and its surge past significant resistance levels have rekindled investor confidence and generated conversations about a new all-time high by the end of the year. While funding rates indicate heightened demand for long ETH positions, they remain below levels recorded when ETH hit its all-time high of $4,890 three years ago, which suggests that the cryptocurrency is not yet overvalued and does not face a significant correction risk.
Ethereum’s price outlook shows that, while it has broken through the resistance level of $3,500, it still faces the possibility of continuing its consolidation phase. Despite surging above $3,500 on Wednesday, ETH has remained above that level since then, with a 4% plunge from $3,680, indicating that it is currently consolidating.
It remains uncertain whether the coin will continue consolidating or move upwards, driven by flows into the U.S. spot Ethereum exchange-traded funds (ETF) market.
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<p>The post Ether’s Positive Momentum: Ethereum’s Potential for Growth and the Importance of Funding Rates first appeared on CoinBuzzFeed.</p>
