Will Ethereum Overcome Its Bad Luck? Analysts Share the Key Element for a Potential Rally
CryptoQuant analysts have identified a crucial factor they believe is necessary for Ethereum’s price to see a significant rally.
A recent report from CryptoQuant highlights a growing sense of optimism among Ethereum traders, as evidenced by positive funding rates in the futures market. These positive funding rates, which indicate the balance of demand between buyers and sellers, suggest a bullish sentiment towards Ethereum in the market.
The analysis reveals that Ethereum’s funding rate is steadily increasing, signaling that traders in the futures market are becoming more interested in investing in Ethereum’s potential for price appreciation. Despite this positive trend, analysts caution that funding rates have not yet reached the levels seen earlier in March, when Ethereum experienced a notable rally.
According to CryptoQuant, this gap indicates that while confidence in Ethereum’s future is on the rise, it has not yet reached the threshold needed for a major breakthrough. Analysts suggest that for Ethereum to break through current resistance levels and establish a sustained uptrend, funding rates must continue to rise. Higher funding rates could indicate a stronger willingness among traders to take long positions, potentially boosting buying pressure on Ethereum and fueling a more substantial rally.
The analysts at CryptoQuant believe that a continued increase in positive funding rates will likely pave the way for a more robust uptrend and reinforce bullish sentiment in the futures market.
Please note that this information is not intended as investment advice. If you are interested in investing in over 300 cryptocurrencies, you can sign up with Binance exchange with a 20% COMMISSION DISCOUNT through this link. Follow our Telegram and Twitter accounts for exclusive news, analytics, and on-chain data.
