The U.S. Federal Reserve last week cut the federal funds rate by 50 basis points, the first rate cut in four years. Cryptocurrency markets have performed well, with ether having appreciated by more than 15%, while Bitcoin has gained about 6% in the same period.

According to data from Coinglass, since the news was announced, the Ethereum perpetual futures financing rate has turned positive and is currently around 0.008%. Analysts believe that this indicates bullish market sentiment for Ethereum. Although there is also the risk of a market correction if optimism is excessive or external factors change, Ethereum’s positive funding rate reflects increased demand for leveraged long positions, indicating that With a bullish outlook.

However, financing rates in the cryptocurrency market tend to experience increased volatility. Ruslan Lienkha, market director of cryptocurrency exchange YouHodler, did not predict an increase in the possibility of bull squeezes, but said that financing rates usually show the mid- to long-term trend of the commodity market, but crypto Monetary funding rates are significantly more volatile, "and it seems to me too risky to open a short position right now in anticipation of a long squeeze."

QCP Capital analysts also observed a positive shift in market sentiment, noting that funding rates on major exchanges have improved, "Funding rates on major exchanges are improving and basis yields are becoming more attractive, especially This follows the recent rate cut, which highlights the growing optimism in the cryptocurrency derivatives space.

With Ethereum up over 15% in a week, is it on track to return to $3,000 levels?

Ethereum outperformed Bitcoin in terms of weekly gains. Ethereum gained 18.7% between September 17 and 23, and the ETH/BTC ratio has also increased by approximately 7.5% over the past seven days, reaching a three-week high of 0.0424 on September 23. Additionally, increases in open interest, funding rates, and network growth also indicate strong demand for Ethereum.

A reversal in the ETH/BTC ratio indicates increased demand for Ethereum. Farside Investor data shows that inflows into U.S. Ethereum spot ETFs turned positive last week, with small inflows of $5.2 million on September 19 and $2.9 million on September 20.

However, inflows into ether investment products still lag Bitcoin, with ether experiencing five consecutive weeks of outflows, totaling $29 million between September 16 and 20, according to CoinShares data. James Butterfill, head of research at CoinShares, noted that this comes down to continued outflows from the Grayscale Trust and minimal inflows from newly issued ETFs. On September 23, the Ethereum spot ETF also broke the trend of continuous inflows, with net inflows falling sharply, ending the momentum of two consecutive days of inflows.

Bitcoin’s declining market dominance is a testament to Ethereum’s outperformance. Is Ethereum Strengthening Against Bitcoin? Bitcoin’s dominance fell from a high of 58.7% on September 19 to 57.4% on September 23, and as Bitcoin’s dominance steadily declines, market participants expect ETH’s value relative to the BTC pair to continue Rising, this indicates that investors are more optimistic about ETH and may allocate more funds to Ethereum investment products.

Ethereum network activity shows increasing demand for ETH, and analyzing Ethereum’s network activity and its scaling solutions is crucial to understanding how ETH can hold on to support at $2,600.

According to DappRadar data, in the past 24 hours, the number of unique active wallets of top Ethereum DApps decreased by an average of 1.42%, and transaction volume increased by 21.92%. The number of DApp transactions on the Ethereum network increased by 6.5% during the same period, driven by the growth of Uniswap, Balancer, ParaSwap and Aave. Other data from DefiLlama also shows that Ethereum TVL has increased, with TVL increasing from $44.1 billion to $49.65 billion between September 18 and September 23.

〈Ethereum outperformed Bitcoin after the Federal Reserve cut interest rates, is it expected to return to the $3,000 level? 〉This article was first published in "Block Guest".