As a seasoned researcher with years of experience in the crypto market, I find myself consistently intrigued by the dynamics of Ethereum (ETH). The recent surge in the Ethereum funding rate and the corresponding price increase above $2,600 has caught my attention.
Regardless of the current market turbulence, the price of ETH has maintained its position above $2,600, bolstered by an increase in the Ethereum funding rate. This growth in the derivatives sector suggests that investors are becoming increasingly optimistic and anticipating a rise towards $3,000.
Ethereum Funding Rates Shows Bullish Shift in ETH Price
According to CryptoQuant, the 30-day moving average for Ethereum’s funding rate has recently become positive, indicating a bullish trend, following a lengthy downturn. This change coincides with the broader market rebound and Ethereum’s price increase of more than 15% over the last week.
1) The increase in the funding rate for Ethereum indicates a rise in buying activity from futures traders. This implies that market players are focusing past the recent sales by the Ethereum Foundation, signaling a positive, bullish outlook. For Ethereum to maintain its growth and reach higher prices, it’s essential for demand in the perpetual futures market to persistently grow in the upcoming weeks.
An ongoing rise in funding rates suggests a potential long-term spike in ETH prices according to CryptoQuant, with analysts anticipating Ethereum may break through its significant resistance level of $3,000 in the near future.
It’s worth noting that Ethereum has experienced some advantages due to the Federal Reserve’s 50 basis point rate reduction this month. On the flip side, the People’s Bank of China unveiled a stimulus plan that may increase market liquidity even further. This potential influx could serve as a significant factor igniting the next phase of the bullish trend.
According to QCP Capital analysts, the broader economic landscape appears increasingly favorable towards higher-risk investments such as cryptocurrencies, following recent interest rate reductions and China’s economic stimulus measures.
It’s expected that the People’s Bank of China (PBoC) will implement further monetary easing, a stance they have clearly signaled. Additionally, the U.S. Federal Reserve has joined other global central banks in lowering interest rates, leaving only the Bank of Japan not preparing to infuse more liquidity into the market.
As a crypto investor, I’m closely watching the ETH price movement. It seems to be inching towards a significant resistance level around $2,800. If it manages to break through this barrier, we could see it soaring past $3,000. However, at $2,800, there might be some selling pressure that needs to be overcome. If it does, it could pave the way for the next phase of the rally.
Over the last seven days, the ETH/BTC exchange rate has experienced a robust rebound, surging by over 33%. This indicates that investors are currently favoring Ethereum more than Bitcoin. Presently, the ETH/BTC ratio is sitting at approximately 0.04.
Spot Ethereum ETF Inflows Bouncing Back
Recently, the outflow of U.S. spot Ethereum Exchange-Traded Funds (ETFs) has significantly increased, reflecting a decrease in investor interest towards altcoins. However, the largest inflow was observed when optimism returned to the broader cryptocurrency market. Notably, crypto experts like Arthur Hayes suggested purchasing Ethereum despite recent concerns, indicating that it could still be a good investment choice.
On September 24, Tuesday, there was a significant increase in investments for Ethereum ETFs, amounting to more than $62 million. Notably, the BlackRock Ethereum ETF (ETHA) accounted for a substantial portion of these inflows, with approximately $59.3 million. Remarkably, no ETF issuers experienced outflows on this day.
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2024-09-25 15:56