The futures market has played a significant role in Ethereum's recent price movements, with the past few weeks highlighting this influence. Analyzing futures market sentiment offers valuable insights into potential price trends.

This chart showcases the Ethereum Funding Rates metric, which gauges whether buyers or sellers are more aggressive in placing orders. Positive values reflect a bullish sentiment, while negative values indicate a bearish outlook.

As observed, funding rates have been trending downward in recent months, hitting their lowest levels. This consistent decline suggests a prevailing bearish sentiment in the market, with a noticeable 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 continues, further price declines are likely in the mid-term.

Written by ShayanBTC