Ethereum Correction Over? Binance Funding Rates Signal ETH Surging To $6,800

Ethereum (ETH) may be nearing the end of its price correction, as the second-largest cryptocurrency by market cap continues to trade slightly above $4,000, following a strong sell-off last week when it almost crashed to $3,400. Ethereum Price Correction May Be Over According to a CryptoQuant Quicktake post by contributor PelinayPA, Ethereum funding rates on Binance crypto exchange have remained positive, despite being in a narrow ￰0￱ shows that long positions on ETH still dominate the ￰1￱ Reading: Bitcoin Market Feels “Too Efficient” As Arbitrage Opportunities Vanish – What It Means For Price? ETH funding rates fluctuating normally on Binance – despite the digital asset’s recent extraordinary price appreciation – implies that futures traders are not exhibiting greed or euphoria, typically associated with the mid-phase of a healthy ￰2￱ example, during the 2021-22 bull cycle, ETH funding rates often surged to 0.1% to 0.2%, aligning with local market ￰3￱ present, these funding rates are hovering around 0.01% to 0.03%, implying that the market has not reached overheated levels just ￰4￱ addition, the absence of negative funding rates confirms a decline in short positioning, and elevated risk appetite among ￰5￱ CryptoQuant analyst added: The overall trend remains ￰6￱ funding rates combined with strong price momentum suggest that the correction is likely ￰7￱ the short term, minor profit-taking or sideways consolidation between $3,600–$3,800 would be ￰8￱ funding rates gradually rise above 0.05%, it could signal overcrowded longs and trigger a short term ￰9￱ current combination of moderate levels of leverage and gradually rising spot demand hints toward a potential ETH rally, eyeing the $4,500 to $5,000 range in the long ￰10￱ price target could be even higher with a favorable derivatives structure and funding ￰11￱ said, a sharp increase in funding rates could be seen as an early warning of another price pullback for the cryptocurrency.

However, ETH’s market structure still supports a potential surge to $6,800 by the end of 2025, the analyst ￰12￱ Ready For New Highs? Several indicators point toward ETH looking to resume its bullish ￰13￱ instance, ETH’s Spent Output Profit Ratio (SOPR) trend recently hinted toward the digital asset rising to $5,000 in the near ￰14￱ Reading: Ethereum Close To Local Bottom? Analyst Flags Drop In Binance Open Interest Further, ETH exchange reserves continue to tumble at a rapid ￰15￱ exchange data shows that ETH reserves on exchanges have hit a multi-year low, raising the possibility of an impending “supply crunch” for the ￰16￱ said, there are several other factors that may fuel another sell-off in ETH, pushing its price again below $4,000.

At press time, ETH trades at $4,053, up 0.2% in the past 24 ￰17￱ image from Unsplash, charts from CryptoQuant and ￰18￱