ETH’s $3,000 support level remains intact, enabling renewed bullish activity and long positions.
Funding rates at 0.0092% image increasing demand for long positions, aligning with price recovery.
Rising buying pressure in the futures market could push the altcoin toward its $4,000 resistance level.
Ethereum’s futures market shows signs of recovery following its correction to the $3,000 level. A cooling period in the futures market has brought new interest among traders, indicating a probable bullish move. The funding rates metric, a reliable measure of market sentiment in futures trading, reflects increasing activity.
Ethereum’s $3K Support Holds Firm
ETH’s price has reduced above the $3,000 support level, allowing bullish traders to enter the market again. This strength has created opportunities for long positions as market players prepare for a probable reversal in trend. The sustained $3,000 level serves as a pivotal zone, supporting renewed buyer confidence in Ethereum’s price trajectory.
Funding Rates Indicate Bullish Sentiment
Funding rates, an indicator in the futures market, show increased demand for long positions as noted by CryptoQuant. A noticeable uptick in funding rates suggests traders are committing capital in anticipation of upward momentum. This trend indicates growing optimism that Ethereum could recover from its recent decline and regain higher price levels.
Source: CryptoQuant
Coinglass data indicates that ETH's price stands at $3,360.11, with an OI-weighted funding rate of 0.0092% as of December 31, 2024. Over the observed period, the funding rate fluctuated within a narrow range, aligning with Ethereum’s gradual price recovery.
Source: Coinglass
Notable peaks in the OI-weighted metric corresponded with minor Ethereum price increases between November and December, showing steady market movements during this timeframe.
Buying Pressure Builds on Futures Markets
The recent increase in funding rates points to an inflow of buyers in the ETH futures market. If this trend persists, it could create upward pressure on prices. The added demand for long positions has the potential to push the digital asset toward its next resistance level, estimated at $4,000 in the short to mid-term.
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