To be honest, Ethereum has experienced a lot of major events in the past two years, such as its 10th anniversary and the launch of spot ETFs. Its market value is almost reaching 284 billion US dollars. However, such a huge behemoth has recently been like a "minor crisis". It should have risen steadily, but it has fallen all the way, which makes people say that it is incomprehensible.
Ethereum's performance makes people wonder: Can it still rise? Don't worry, let's take a look at the data. When the financing rate is low, it often indicates that the price of ETH will soar. Now the funding rate of ETH is between 0.002 and 0.005, which is a historical low. Every time this happened before, the price of ETH rose sharply. If the interest rate soars to more than 0.015, the price will be like a rocket. Back then, the price of ETH soared from 1,500 US dollars to 4,000 US dollars.
Looking at the technical analysis again, the RSI indicator also shows a strong bullish divergence. This means that ETH is likely to test higher prices, and may reach $3,500 to $3,600 in the short term. If it breaks through this range, $5,000 will not be a dream in the next few months.
The market trend is also very good, rebounding from the downward trend line and heading straight up. With this momentum, it is difficult for ETH not to make a profit.
In addition, Ethereum's network activity is also very popular. On September 1, although the gas price was not high, the daily gas usage actually hit a record high of 109 billion. This shows that the Ethereum network is still alive and kicking, and those who say that ETH's influence is weakening can take a break. High gas usage is proof that demand is still there.
The transaction volume of stablecoins on the chain is also very good, reaching $1.46 trillion, more than double the $650 billion at the beginning of last year. Stablecoins such as DAI, USDT, and USDC are all very popular. Especially PayPal's PYUSD, which is now $2.4 billion. This shows that the demand for DeFi is increasing, and traditional finance is also constantly getting involved.
At present, many people in the market are pessimistic about ETH. In addition to the problems of the Ethereum ecosystem itself, the Ethereum Foundation continues to sell off, and the founder Vitalik Buterin is dating girls every day. It is also affected by the overall market conditions of the current crypto market. Except for Bitcoin, most altcoins have far exceeded ETH. It's just that the market has given ETH too high expectations.
