Ethereum is currently experiencing a significant uptick in its price, with the second-largest cryptocurrency by market capitalization breaking through key resistance levels. Over the past week, Ethereum has seen a nearly 10% increase in its value, sparking discussions about the possibility of reaching a new all-time high by the end of the year.
One of the driving factors behind Ethereum’s rally is the renewed interest in Ethereum futures, with market metrics indicating a bullish sentiment among traders. CryptoQuant analyst ShayanBTC highlighted the role of funding rates in futures trading, noting that Ethereum’s funding rates have been on the rise in recent weeks. This increase suggests a growing demand for long positions, although funding rates are still below the peak seen during Ethereum’s previous all-time high, indicating room for further growth.
While funding rates can signal bullish sentiment, they also serve as a warning sign for potential market corrections. Sharp increases in funding rates have historically been followed by market downturns or liquidation cascades. However, Shayan believes that Ethereum’s current funding rates are manageable, suggesting that the market has more room to grow before facing significant risks.
In terms of market performance, Ethereum has posted double-digit gains over the past two weeks, pushing its price above the critical $3,500 resistance level. The cryptocurrency is now eyeing the next major resistance at $4,000, currently trading at $3,563 with a 1.3% increase in the last 24 hours. Despite this positive momentum, Ethereum is still around 26.78% below its all-time high of $4,878.
On the flip side, Coinglass data shows that in the past 24 hours, 98,389 traders have been liquidated, totaling $278.03 million in liquidations. Of this amount, Ethereum accounts for around $63.33 million, with $40 million from short positions and $23.3 million from long positions.
Looking ahead, renowned crypto analyst Ali on X has reiterated his targets for Ethereum, setting a mid-term target of $6,000 and a long-term target of $10,000. With the current price performance and market sentiment surrounding Ethereum, the cryptocurrency seems poised for further growth in the coming weeks and months.
In conclusion, Ethereum’s recent rally and bullish sentiment among traders indicate a positive outlook for the cryptocurrency. As it continues to break through resistance levels and attract renewed interest in futures trading, Ethereum may be on track to reach new heights in the near future.