Ethereum Prepares For Potential Surge As Funding Rates Hit 0.02 Amidst the recent price rally in the last week, crypto analyst Burak Kesmeci notes that Ethereum funding rates have now climbed above 0.02, which can be described as a strong bullish signal. Generally, funding rates are periodic payments made between traders in the perpetual future contracts during funding intervals. A funding rate of 0.02 indicates long position domination and demands that long traders pay 2% of the notional value of their position to short traders in order to maintain the price of perpetual contracts close to the spot market price of an asset. According to Kesmeci, long positions in futures markets are crucial to initiating strong bull rallies in the same vein as spot market acquisitions. Interestingly, historical data as shared by the analyst shows that Ethereum has consistently experienced a major price uptrend whenever funding rates have risen and stayed above 0.02.
Related Reading: Ethereum L2 Project Spark Launches On-Chain Order Book On Fuel Network To Enhance Trading ETH Meets Crucial $3,000 Resistance Level With Ethereum’s price hovering above $2,900, the token is set to soon encounter a major resistance at the $3,000 price mark. According to a report by blockchain analytics company IntoTheBlock, this particular resistance level which can be described as a historically significant demand zone is normally expected to provide much opposition to Ethereum’s ascent. However, the current bullish momentum in the ETH market is likely to subdue this resistance, allowing the asset to maintain its current rally.
Likewise, on November 2, 2020, Ethereum also embarked on a bullish course surging by over 1000% in 350 days. Most recently, Kesmeci notes that the altcoin’s price grew by 150% in 150 days as the funding rates crossed 0.02 on October 4, 2023.
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