[Analysis] "Ethereum, Funding Rate Normalizes... Foundation for a Bull Rally Formed"
Summary
- It was analyzed that Ethereum's funding rate has returned to normal, raising the possibility of a bull rally.
- It was stated that after last week's rise in the funding rate, a large-scale liquidation occurred, normalizing the rate.
- Based on past cases, the normalization of the rate could signal the start of a bullish phase.
An analysis suggests that the foundation for a bull rally has been formed as the funding rate, which reflects the sentiment in the futures market for Ethereum (ETH), has returned to normal levels.
On the 22nd (local time), CryptoQuant author ShayanBTC reported, "Last week, Ethereum's funding rate surged sharply, but as it failed to break through $4,000, a large-scale liquidation occurred, bringing the funding rate back to normal."
The author further analyzed, "The normalization of the funding rate can serve as a foundation for a future bull rally. In January, a sharp decline in the funding rate stabilized the futures market, laying the groundwork for the next bull rally. Such past instances indicate the potential start of a bullish phase."
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
