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Ethereum is finally seeing a notable rebound in its price as the second largest cryptocurrency by market capitalization, which continues to break through important resistance levels.
Following its upward trajectory, seeing an increase of almost 10% last week, as discussions on Ethereum could reach a new all-time high by the end of the year. gained momentum.
The renewed interest in Ethereum futures notably aligns with ETH’s ongoing rally, with market metrics indicating bullish sentiment among traders.
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More room for growth?
A CryptoQuant analyst known as ShayanBTC recently shared his views on Ethereum’s ongoing rally, highlighting the role of funding rates, a crucial metric in futures trading. Funding rates reflect trader sentiment and indicate whether the market is primarily bullish or bearish.
According to Shayan, Ethereum funding rates have seen a notable rise in recent weeks, suggesting that demand for long positions is increasing.
Despite this bullish sentiment, the analyst mentioned that funding rates remain below Ethereum’s previous all-time high of $4,900, signaling that “it has not yet entered an overheated state.”
At the same time, while indicative of bullish sentiment, funding rates also act as a harbinger of possible market corrections. Historically, large increases in funding rates have been followed by sudden market corrections or cascades of liquidations.
However, Shayan notes that Ethereum’s current funding rates are still manageable, implying that the market has more room to grow before such risks become critical.
Ethereum Market Performance and Outlook
Ethereum is currently on an upward trajectory, posting notable double-digit gains of around 15.6% over the past two weeks. This bullish performance pushed ETH to breach the critical resistance level of $3,500, aiming for the next major resistance at $4,000.
Currently, Ethereum is trading at $3,563, reflecting a 1.3% increase over the past 24 hours. However, this price represents a slight pullback from its 24-hour high of $3,682 recorded earlier today.
Additionally, Ethereum’s current price is only 26.78% below its all-time high of $4,878, highlighting its gradual recovery in the market.
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Regardless of the bullish sentiment, Coinglass data shows that in the last 24 hours alone, 98,389 traders were liquidated, with total liquidations amounting to $278.03 million.
Of this total liquidation amount, Ethereum accounts for approximately $63.33 million, with $40 million coming from short positions and $23.3 million from long positions.
Amid Ethereum’s current price performance, the famous crypto analyst known as Ali on X has reiterated its goal for ETH. Ali said the medium-term target remains $6,000 and the long-term target remains $10,000.
Our medium-term objective for #Ethereum $ETH $6,000 left… Long-term goal: $10,000! pic.twitter.com/siQsJzelzE
– Ali (@ali_charts) November 27, 2024
Featured image created with DALL-E, chart from TradingView