Funding rates indicate a potential recovery for ETH.
Funding rates, a key indicator of market sentiment in futures markets, provide important evidence that trader behavior changes during the consolidation phase.
Ethereum’s ability to remain firmly above $3,000 support has created an opportunity for optimistic market participants to regain ground.
This change is reflected in a noticeable increase in funding rates, highlighting an increase in long positions as traders position themselves for a potential trend reversal.
Rising funding rates highlight increased demand and are often interpreted as increased confidence in the asset’s recovery potential.
If this momentum continues, Ethereum could rebound towards the $4,000 resistance zone on the back of increasing buying pressure and more favorable sentiment across derivatives markets.
Ethereum price analysis and prediction for 2025
With Ethereum trading at $3,385 by 2025, market indicators point to a cautious but optimistic outlook.
The RSI indicates some bearish momentum, while the MACD histogram shows signs of waning bearish pressure, hinting at a potential upside.
Recent on-chain data shows a surge in ETH withdrawals from exchanges. This is often a bullish signal that reflects the investor’s long-term accumulation.
Additionally, active addresses on Ethereum have surged since December due to increased layer 2 adoption across Optimism (OP) and Arbitrum (ARB).
Read Ethereum (ETH) price prediction for 2025-2026
If buying momentum continues, ETH could target the $4,000 resistance level in Q1 2025, buoyed by a possible resurgence of institutional interest following Donald Trump’s second term.
However, broader macroeconomic factors and Bitcoin’s trajectory still have a significant impact on Ethereum’s medium-term performance.