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Ethereum is finally seeing a notable recovery in its price as the second largest cryptocurrency by market capitalization, which continues to break significant resistance levels.
To follow its upward trajectory, to see it an increase of almost 10% in the past week, discussions about Ethereum possibly reaching a new all-time high by the end of the year gained momentum.
In line with the ongoing ETH rally, there has been renewed interest in Ethereum futures in particular, with market statistics pointing to bullish sentiment among traders.
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More room for growth?
A CryptoQuant analyst known as ShayanBTC recently shared insights into the ongoing rally in Ethereum, highlighting the role of funding rates – a crucial metric in futures trading. Funding rates reflect traders’ sentiment and indicate whether the market is predominantly bullish or bearish.
According to Shayan, Ethereum funding rates have increased noticeably in recent weeks, indicating that demand for long positions is growing.
Despite this bullish sentiment, the analyst said funding rates remain below the peak of Ethereum’s previous all-time high of $4,900, indicating that “it has not yet entered an overheated state.”
Meanwhile, funding rates, while indicative of bullish sentiment, are also a warning sign of potential market corrections. Historically, sharp increases in financing rates have been followed by sudden market corrections or liquidation cascades.
However, Shayan notes that Ethereum’s current funding rates are still manageable, implying that the market has more room to grow before such risks become critical.
Ethereum Market Performance and Outlook
Ethereum is currently on an upward trajectory, posting notable double-digit gains of approximately 15.6% over the past two weeks. This bullish performance has pushed ETH to break the critical resistance level at $3,500 and set its sights on the next major resistance around $4,000.
Currently, Ethereum is trading at $3,563, reflecting a 1.3% increase in the past 24 hours. However, this price represents a slight decline from the 24-hour high of $3,682 earlier today.
Additionally, Ethereum’s current price is just 26.78% below its all-time high of $4,878, underscoring the gradual recovery within the market.
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Regardless of the bullish sentiment, Coinglass facts shows that 98,389 traders were liquidated in the last 24 hours alone, with the total number of liquidations reaching $278.03 million.
Of this total amount of liquidations, Ethereum is responsible for approximately $63.33 million, with $40 million coming from short positions and $23.3 million from long positions.
Amid Ethereum’s current price performance, renowned crypto analyst known as Ali on repeated are target for ETH. Ali said the medium-term goal remains $6,000 and the long-term goal remains $10,000.
Our medium-term objective for #Ethereum $ETH remains $6,000… Long term goal: $10,000! https://t.co/X4lodGGIVY pic.twitter.com/siQsJzelzE
— Ali (@ali_charts) November 27, 2024
Featured image created with DALL-E, Chart from TradingView
Credit : www.newsbtc.com
