After Ethereum's significant correction to the $3K level, the futures market has begun a cooling-off period, raising expectations for a potential bullish rebound. The funding rates metric, a trusted proxy for futures market sentiment, offers valuable insights into this development.
Ethereum’s consolidation above the critical $3K support level has allowed bullish participants to re-enter the market. This renewed demand is reflected in the uptick in funding rates, signaling that more traders are opening long positions. Such behavior often indicates growing confidence among market participants as they anticipate a reversal in the current trend.
The recent spike in funding rates suggests an influx of buyers, which, if sustained, could drive a substantial bullish rebound. This renewed buying pressure has the potential to push Ethereum toward the crucial $4K resistance in the short to mid-term.
Written by ShayanBTC
