According to a recent statement from cryptocurrency analysis firm CryptoQuant, bullish sentiment is building in the Ethereum futures market. This renewed optimism is reflected in positive ETH funding rates, a key metric measuring the balance between buyers and sellers in the futures market. Positive funding rates suggest that buyers are more aggressive, indicating a bullish outlook.
CryptoQuant notes that while the current funding rates are positive and trending upwards, they remain below the levels observed in March when Ethereum experienced a significant bullish run. This suggests a growing, but not yet overwhelming, bullish sentiment. A stronger surge in positive funding rates would signal the increased buying interest and confidence needed to propel Ethereum beyond key resistance levels.
The analysis firm explains that higher funding rates would not only confirm traders’ willingness to hold long positions in Ethereum but also contribute to upward price pressure. This increased buying pressure could potentially trigger a more substantial and sustained rally. Therefore, while the current positive funding rates are encouraging, a further increase will be crucial for confirming a significant breakout for Ethereum.
