Ethereum Funding Rates Hit Multi-Month Highs, But Is A Correction On The Horizon? - ADVFN

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Name	Symbol	Market	Market Cap ($)	Algorithm
Quant	QNTUSD	Crypto	2,134,794,177	Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	3.24	2.26%	146.48	146.26	146.37

High Price	Low Price	Open Price	Prev. Close	52 Week Range
146.79	140.22	142.45	143.24	50.05 - 171.69

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	05:31:42	1.03	146.47	USD

Price x Volume	Volume	Base Symbol	Related Pairs
1,494,940.66	10,427.69	QNT	QNTEUR	QNTGBP	QNTBTC

Ethereum Funding Rates Hit Multi-Month Highs, But Is A Correction On The Horizon?

10/12/2024 1:00am

NEWSBTC

Ethereum, the second-largest crypto by market capitalization, has recently demonstrated strong bullish momentum, breaching above $4,000. It is worth noting that its price rally has been accompanied by a significant spike in its funding rates, a critical metric reflecting sentiment in the futures market. The metric, analyzed by CryptoQuant analyst ShayanBTC, has reached levels not seen since January 2024. This surge in funding rates suggests a growing optimism among traders, with many anticipating the possibility of Ethereum reaching new all-time highs. Related Reading: Large Ethereum Transactions Grow As ETH Breaks Yearly Highs But Is A Correction On The Horizon? Despite this enthusiasm, the market’s current state raises questions about sustainability. Historically, such spikes in funding rates have often preceded short-term corrections, stabilizing the market. According to Shayan, the current situation mirrors January 2024, when Ethereum saw an 88% rally following similar market conditions. The analyst suggests that while the current rally may pave the way for further gains, a pullback could be essential for healthier long-term growth. Funding rates serve as a barometer for market sentiment, particularly in the futures market. A positive funding rate indicates a preference for long positions, with traders expecting higher prices. Ethereum Funding Rates Hit Multi-Month High “Funding rates are at levels last seen in January 2024, when Ethereum rallied by 88%. This reflects increased long-position interest as optimism grows. Similar to January, this sharp increase suggests the likelihood of a pullback.” –… pic.twitter.com/euKGhIqNKO — CryptoQuant.com (@cryptoquant_com) December 9, 2024 As Ethereum’s funding rates hit multi-month highs, this trend signals a surge in bullish sentiment. However, history shows such sharp increases can create short-term market imbalances, leading to corrections. Shayan noted: While Ethereum’s rally is underpinned by bullish sentiment, the spike in funding rates signals the need for a short-term correction, paving the way for healthier and more sustainable price growth. Ethereum Market Performance Ethereum remains below the $4,000 mark after falling below this level last week. Currently, ETH is trading at $3,819, reflecting a 4.9% decline in the past 24 hours. Despite the recent drop, the asset has gained nearly 30% over the past month. However, ETH’s latest dip further distances it from its all-time high of $4,878 in 2021, leaving it 20.5% below that peak. Related Reading: Ethereum Active Addresses Surge By 36% In Support Of Bullish Price Action – Details Nevertheless, market analysts maintain a bullish outlook on Ethereum, with many projecting potential new highs for the asset shortly. $ETH Hello everyone, I felt the need to share a detailed #ETHUSDT analysis with you. I hope you find it helpful. First and foremost, despite the recent rise in $BTC, Ethereum and altcoins have not yet responded as expected. Therefore, I encourage those who are worried to remain… pic.twitter.com/XsB2HroNnG — Talha Batuhan Ayna (@TBatuhanAyna) December 9, 2024 Featured image created with DALL-E, Chart from TradingView

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