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Ethereum, finally the second-largest cryptocurrency by market capitalization, is showing a notable price rally and continues to break through significant resistance levels.
If you follow the upward trajectory, It’s up nearly 10% in the past week, and there’s been talk that Ethereum could possibly hit a new all-time high by the end of the year. It gained momentum.
In particular, interest in Ethereum futures is growing again in line with the ongoing ETH rally, and market indicators are pointing to bullish sentiment among traders.
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Is there room for more growth?
A CryptoQuant analyst known as ShayanBTC recently shared insights into the ongoing bull trend in Ethereum, highlighting the role of funding rates, an important indicator in futures trading. Funding rates reflect trader sentiment and indicate whether the market is predominantly bullish or bearish.
According to Shayan, Ethereum’s funding rate has risen noticeably in recent weeks, suggesting growing demand for long positions.
Despite these optimistic sentiments, the analyst noted that funding rates remain below Ethereum’s previous high of $4,900, signaling that it has “not yet entered overheating mode.”
Meanwhile, while the funding rate signals optimism, it also serves as a warning signal of a potential market correction. Historically, sharp increases in funding rates have been followed by sudden market corrections or subsequent liquidations.
However, Shayan points out that Ethereum’s current funding ratio is still manageable, meaning the market has more room to grow before these risks become serious.
Ethereum market performance and outlook
Ethereum is currently experiencing an upward trajectory and has recorded notable double-digit gains of approximately 15.6% over the past two weeks. This bullish performance allowed ETH to break the important $3,500 resistance level and target the next major resistance at $4,000.
Ethereum is currently trading at $3,563, up 1.3% in the last 24 hours. However, this price is down slightly from the 24-hour high of $3,682 hit this morning.
Additionally, Ethereum’s current price is 26.78% lower than its all-time high of $4,878, highlighting the gradual recovery within the market.
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Regardless of the optimistic mood, Coinglass data shows that in the last 24 hours alone, 98,389 traders were liquidated, bringing the total liquidation amount to $278.03 million.
Of this total liquidation amount, Ethereum accounts for approximately $63.33 million, with $40 million of these liquidations coming from short positions and $23.3 million from long positions.
Amid Ethereum’s current price-performance ratio, a renowned cryptocurrency analyst known as Ali on repeated His goals for ETH. Ali said the medium-term target remains at $6,000 and the long-term target remains at $10,000.
Our mid-term goal is #Ethereum $ETH Still $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