A prominent crypto analyst has suggested that Ethereum (ETH) could be on the verge of a parabolic price rally, provided a minor shift in trader sentiment occurs. In a note published on 12th September, CryptoQuant contributor Burak Kesmeci highlighted the importance of Ether’s funding rate — the fee paid by traders in futures contracts to stabilize prices with the spot market.
Kesmeci explained, “We are waiting for Ether’s funding rate to rise above 0.015, which could signal the end of the calm before the storm.” A rise in funding rates typically indicates growing market optimism, as traders are willing to pay more to hold long positions, which could be crucial for triggering a price rally.
Ether Needs Positive Signals for Price Surge
Currently, Ether’s funding rate sits at approximately 0.0056%, a level similar to that in September 2023, just before it rose and spurred a 166% price surge over the following six months. During that period, ETH’s price increased from $2,349 to over $4,000. Kesmeci noted that a rise in the funding rate is essential for “tracking healthy increases during bull markets.”
Ether’s price is up 47.57% over the past twelve months. Source: CoinMarketCap
Price Stagnation and Doubts
Despite the potential for a rally, Ether has struggled to surpass the $2,500 mark since 2nd September. Many traders are skeptical about the token’s ability to break through this level in the short term. CoinGlass data shows that if Ether does manage to exceed $2,500, approximately $576 million in short positions could be at risk of liquidation.
While Ether remains far below its all-time high of $4,810 from September 2021, some traders remain hopeful that a shift in market sentiment could spark the next bullish run. However, for now, Ether continues to lag behind Bitcoin (BTC), despite optimism surrounding a potential boost from spot Ether ETFs.
