Ethereum funding rates, network activity, and L2 adoption all point to further upside in the altcoin’s price.
Ethereum funding rates set to hit 0.015
Altcoin on-chain data appears to indicate growing confidence in the market
Ethereum (ETH) has shown signs of potential price growth, with funding rates suggesting that this could be the lull before a price rally. Historically, whenever funding rates are low, Ethereum has seen significant price spikes on the charts.
At the time of publishing this article, the ETH funding rate was at a low level between 0.002 and 0.005. This level has historically preceded price spikes.
If the rate goes above 0.015, as it did in previous bull markets, the price of Ethereum could surge even higher. The last time the Ethereum funding rate reached this point, the price rose from $1,500 to $4,000.
Source: CryptoQuant
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Home > Ethereum > Will Ethereum Hit $4,000 Again? Stay Tuned for Ethereum Funding Rates!
Ethereum
Will Ethereum Hit $4,000 Again? Stay Tuned for Ethereum Funding Rates!
3 minutes to read
Ethereum funding rates, network activity, and L2 adoption all point to further upside in the altcoin’s price.
Published:September 13, 2024
By: Lennox Gitonga
Edited by: Jibin Matthew George
Is Ethereum hitting $4,000 again? Here’s why you should be watching Ethereum funding rates!
Ethereum funding rates set to hit 0.015
Altcoin on-chain data appears to indicate growing confidence in the market
Ethereum (ETH) has shown signs of potential price growth, with funding rates suggesting that this could be the lull before a price rally. Historically, whenever funding rates are low, Ethereum has seen significant price spikes on the charts.
At the time of publishing this article, the ETH funding rate was at a low level between 0.002 and 0.005. This level has historically preceded price spikes.
If the rate goes above 0.015, as it did in previous bull markets, the price of Ethereum could surge even higher. The last time the Ethereum funding rate reached this point, the price rose from $1,500 to $4,000.
Source: CryptoQuant
Based on historical trends, a similar scenario could unfold as Ethereum enters the last quarter of the year — traditionally a time of strong market movement.
Futures market support is expected to play a crucial role in this potential price rally, with funding rates being a key indicator to watch for price rally.
ETH technical analysis is starting to look good.
Ethereum technical analysis also indicated a bullish outlook. Recently, Ethereum has been consolidating within an expanding wedge pattern, with the RSI showing strong bullish divergence.
This means that Ethereum may soon test higher price levels, reaching $3,500 to $3,600 in the near term. If Ethereum manages to break out of this range, it may target $5,000 in the coming months.
The prevailing market trend of bouncing off the lower trendline and heading higher suggests that ETH could be poised for higher gains, especially if market conditions mirror past performance.
Source: TradingView
Daily gas consumption reaches record level
Ethereum network activity has also remained strong. On September 1, daily gas usage hit an all-time high of 109 billion, despite gas prices falling in recent weeks.
This achievement indicates that the Ethereum network is still very active, which refutes claims that ETH’s influence is waning. In fact, the high gas usage shows that demand for Ethereum is still healthy.
Source: Etherscan
On-chain ETH stablecoin volume hits record high
In addition to gas usage, the volume of stablecoins on the Ethereum chain has also reached a record high. The volume has reached $1.46 trillion, more than double the $650 billion it was at earlier this year.
DAI topped the stablecoin market with a trading volume of $960 billion, while USDT and USDC also continued to dominate.
The rise in stablecoins is driven by the growing demand for decentralized finance and the increasing participation of traditional finance. An example of this is PayPal’s PYUSD, which has now risen to $2.4 billion.
Source: The Block
L2 adoption hits new highs
Finally, Layer 2 (L2) adoption has also reached new highs, contributing to Ethereum’s long-term growth.
L2 solutions like Arbitrum, Base, Optimism, and Mantle are enhancing the scalability and reliability of Ethereum. This further supports the case for a long-term rise in the price of ETH.
Source: growthepie
