Ethereum (ETH), the world’s second-largest cryptocurrency, maintains its bullish momentum
Surging another 7% and edging closer to the $3,900 mark. A recent surge in the ETH price demonstrates renewed faith among investors while igniting a flurry of buying activity in the cryptocurrency market. The Ethereum funding rates have experienced a substantial uptick, similar to levels observed in late 2020 when ETH embarked on a robust bullish rally toward its all-time high. Therefore, traders need to closely monitor funding rates amidst ETH’s bullish momentum and implement effective risk management strategies, reports CryptoQuant. At present, the Ethereum price stands at $3,775, with its market capitalization surpassing $450 billion.
Ethereum Funding Rates
A key metric shedding light on these market dynamics is Ethereum’s funding rates, which serve as a gauge for the intensity of trades in the futures market. Positive rates denote a bullish outlook, whereas negative rates signify a bearish sentiment among traders. This surge in funding rates underscores a prevailing bullish sentiment among futures traders, hinting at the potential for a sustained upward trend. However, excessively high values can pose risks, increasing the likelihood of long liquidation cascades, potentially leading to heightened market volatility and unforeseen corrective movements.
Ether Upward Trajectory
Ether has recommenced its upward trajectory, aiming for the significant $4,000 milestone, even in the face of widespread profit-taking by investors. The Ethereum Dencun upgrade, scheduled to launch on March 13, represents a pivotal advancement on the Ethereum mainnet. This milestone holds considerable significance for Layer 2 chains and rollups, signifying progress in Ethereum’s technical infrastructure. The Dencun upgrade introduces a groundbreaking feature known as “proto-danksharding,” which involves the utilization of blobs to alleviate strain on the underlying blockchain infrastructure and decrease expenses for Layer 2 chains and rollups reliant on the Ethereum network. Integral to the Dencun upgrade is EIP-4844, a pivotal Ethereum Improvement Proposal facilitating this capability.
Analyst comment
Positive news: Ethereum (ETH) maintains its bullish momentum and surges another 7%, approaching the $3,900 mark. The surge in ETH price demonstrates renewed faith among investors, igniting buying activity in the cryptocurrency market. Funding rates have increased, indicating a bullish sentiment among traders. The Ethereum Dencun upgrade on March 13 is a significant advancement for Layer 2 chains and rollups, improving Ethereum’s technical infrastructure and decreasing expenses. Analyst view: ETH market is expected to continue its upward trajectory, aiming for the $4,000 milestone, with potential risks due to high funding rates.
