Ethereum’s recent performance in the futures market is creating optimism among traders and analysts, according to information shared by CryptoQuant analyst ‘ShayanBTC.’
As the second-largest crypto by market capitalization, Ethereum has received significant attention following the rise in prices—a measure used to measure the balance of demand between buyers and sellers of futures contracts.
Increase in Subsidy Rates to Fuel the Explosion?
Positive liquidity levels suggest that there are aggressive buyers, indicating a bullish sentiment, while negative values suggest more sellers and a bearish outlook. This trend shows a favorable market sentiment for Ethereum, although some observations have been made regarding its stability.
Despite this renewed hope, the current funding rates of Ethereum, as highlighted by Shayan will still be similar to the levels seen at the beginning of 2023, when the cryptocurrency received a significant bullish trend in March.
This difference may indicate that, although sentiment is changing, momentum may need to strengthen further to fuel a further rally.
Shayan’s observations suggest that while traders are leaning towards positive sentiment about Ethereum, this sentiment should translate into higher funding levels to reflect strong belief in the asset’s potential price rise. A commenter wrote:
For Ethereum to overcome key resistance levels and continue to rise, a higher currency rate would indicate increased buying interest and confidence from futures traders. High levels of funding will not only ensure participants’ willingness to spend long-term on Ethereum but will also add upward pressure on the price, potentially leading to a stronger and more stable rally.
Ethereum Market Performance
Ethereum has seen significant growth in price in recent weeks. The commodity recorded an increase in price that rose to $2,719 on Wednesday.
However, following a stock that reaches this price mark comes a significant correction. Over the past day, ETH is down 5.1%, erasing some of the gains of the past few days.
At the time of writing, the stock is trading at $2,550 from $2,548 in 24 hours. ETH’s daily trading volume also followed a similar trend, dropping from over $24 billion on Wednesday to below $20 billion. Regardless of this performance, some analysts remain bearish on ETH.
For example, the famous crypto analyst Javon Marks recently highlighted that Ethereum will come out of “Hidden Bull Divergence patterns and RSI explosion,” which puts its price to rise by 75% to reach the $4811.6 target.
$ETH (Ethereum), emerging from multiple confirmed Bullish Divergence patterns and RSI breakouts, may be positioned here to advance to the $4811.6 target!
With prices up nearly +120% since the breakout, the run looks futile, so another +75% move to… pic.twitter.com/PrPDxfPzPa
– JAVON
The featured image was created with DALL-E, a Chart from TradingView