Analyst Predicts Ethereum (ETH) is Poised for a Surge, Provides Explanation!
According to an analyst, recent data suggests that Ethereum is entering a bull market.
The leading altcoin, Ethereum, has outperformed Bitcoin following the Federal Reserve’s interest rate cut.
Since the rate cut, ETH has experienced a 16% increase in value, while BTC has only seen a 6% increase.
This surge in Ethereum’s value aligns with a significant rise in the Ethereum rate, indicating a strengthening demand for long positions and growing investor optimism for an increase in ETH price.
Ruslan Lienkha, the market chief at YouHodler, stated in an interview with The Block that the rise against Bitcoin and the rise in funding rates indicate a bull market for Ethereum.
However, Lienkha cautioned that if investors’ optimism becomes exaggerated or external factors change, there is a risk of a correction in Ethereum’s price.
“A positive funding rate for Ethereum reflects increasing demand for leveraged long positions and points to a bull market outlook,” Lienkha explained.
The analyst also noted that while volatility tends to increase after funding rates rise in the cryptocurrency market, he does not anticipate a long squeeze for ETH.
Lienkha stated, “Cryptocurrency funding rates are significantly more volatile than commodity markets. While Ethereum has seen significant funding rates increase, opening a short position in anticipation of a long squeeze for ETH seems very risky at the moment, in my view.”
As of the time of writing, Ethereum has seen a 16.3% increase in the past week and is currently trading at $2,655.
*This article is not intended as investment advice.
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