Amid the volatile market conditions, Ethereum (ETH) has managed to maintain its price above $2,600, boosted by the rise in the Ethereum funding rate, indicating a positive shift towards a potential rally to $3,000. The increase in the funding rate is a sign of growing bullish sentiment among futures traders. This suggests that investors are optimistic about Ethereum’s outlook and are looking past recent selling pressures from the Ethereum Foundation.
According to reports from CryptoQuant, the 30-day moving average of the Ethereum funding rate has recently turned bullish, coinciding with the overall market recovery and ETH’s price surge of more than 15% in the last week. This rise in funding rates could potentially lead to further price increases for ETH in the medium term, with analysts predicting a breach of the key resistance level of $3,000.
Moreover, Ethereum has also received a boost from the recent 50 bps rate cut by the Federal Reserve, while the People’s Bank of China announced a stimulus package that could inject more liquidity into the market, serving as a catalyst for the next phase of the rally. Analysts from QCP Capital are optimistic about the macro environment for risk assets, including cryptocurrencies, following the recent rate cuts and stimulus measures.
Technically, ETH is approaching a crucial resistance level of $2,800 before aiming for $3,000, with potential selling pressure expected at $2.8K. Concurrently, the ETH/BTC ratio has seen a significant recovery, gaining over 33% in the past week, indicating a preference for ETH over BTC at the moment.
Additionally, the US spot Ethereum ETFs witnessed a surge in outflows recently, reflecting diminishing interest in the altcoin. However, a resurgence in the broader crypto market sentiment led to substantial inflows of over $62 million on Tuesday, particularly into the BlackRock Ethereum ETF (ETHA). This resurgence in interest signals renewed confidence in Ethereum despite recent concerns.
In summary, the positive developments in both the Ethereum funding rate and ETF inflows suggest growing bullish momentum for ETH, potentially paving the way for a significant price rally towards $3,000.