Ethereum Funding Rates Climb Above 0.02 Indicating Bullish Momentum
Following Donald Trump’s victory in the US presidential election on November 5, Ethereum (ETH) has gained 24.31% over four days, nearing a crucial $3,000 resistance zone.
Ethereum Prepares For Potential Surge As Funding Rates Hit 0.02
Crypto analyst Burak Kesmeci notes that Ethereum funding rates have surpassed 0.02, indicating a bullish trend. Funding rates are payments made between traders in perpetual futures contracts; a rate of 0.02 suggests long position dominance where long traders pay 2% of their position's notional value to short traders.
Kesmeci highlights that rising funding rates often correlate with significant price uptrends for Ethereum. Historical data shows that when funding rates reached 0.02 on July 1, 2020, ETH gained over 100% in 50 days. Similarly, on November 2, 2020, it surged by over 1000% in 350 days. Most recently, a 150% increase occurred within 150 days after funding rates crossed 0.02 on October 4, 2023. This suggests ETH may be set for a bullish run.
This potential uptrend could also affect other altcoins due to Ethereum's status as the largest altcoin by market cap.
ETH Meets Crucial $3,000 Resistance Level
Ethereum is currently trading above $2,900 and approaching the $3,000 resistance level, identified by blockchain analytics company IntoTheBlock as a historically significant demand zone likely to challenge Ethereum's rise.
However, the current bullish momentum may help ETH overcome this resistance, potentially targeting $4,000. Conversely, if rejected, ETH could drop to around $2,400.
At present, Ethereum trades at $2,970, reflecting a 0.98% gain in the last day.
