Ethereum to $4000 again? Look out for ETH’s funding rates!

  • Ethereum funding rates set to hit 0.015 level
  • Altcoin’s on-chain data seemed to point to growing market confidence

Ethereum (ETH) has been showing signs of potential price growth, with funding rates implying that this may be the calm before a price surge. Historically, whenever funding rates have been low, ETH has seen significant price jumps on the charts.

At press time, ETH’s funding rate was at a low level between 0.002 and 0.005. This level has historically preceded price rallies.

If the rate surpasses 0.015, as it did in previous bull markets, Ethereum’s price could rise higher. The last time ETH’s funding rate hit this point, the price soared from $1,500 to $4,000.

Source: CryptoQuant

Based on historical trends, a similar scenario could unfold as Ethereum enters the last quarter of the year – Traditionally a time of strong market movement.

The support of the Futures market is expected to play a crucial role in this potential price hike, with funding rates being a key indicator to watch for higher prices.

ETH technical analysis starting to look good

Ethereum’s technical analysis also pointed to a bullish outlook. Lately, ETH has been consolidating within a broadening wedge pattern, with its RSI showing a strong bullish divergence.

This means that ETH may soon test higher price levels, possibly hitting $3,500 to $3,600 in the near term. If Ethereum can break out of this range, it could aim for $5,000 in the coming months.

The prevailing market trend of bouncing back from the lower trendline and heading towards the upside indicates that ETH may be poised for higher gains. Especially if market conditions mirror past performances.

Source: TradingView

Daily gas usage hits an ATH

Ethereum’s network activity has remained strong too. On 1 September, daily gas usage hit an all-time high of 109 billion, despite low gas prices in recent weeks.

This milestone suggested that Ethereum’s network is still highly active, debunking claims that ETH’s influence is waning. In fact, the high gas usage shows that the demand for Ethereum remains intact.

Source: Etherscan

ETH on-chain stablecoin volume hit a record

In addition to gas usage, Ethereum’s on-chain stablecoin volume has also hit a record high. The volume reached $1.46 trillion, more than doubling from $650 billion earlier this year.

DAI led the stablecoin market with $960 billion in volume, while USDT and USDC continued to dominate too.

The hike in stablecoin volume is being fueled by greater DeFi demand and the growing involvement of traditional finance. An example is PayPal’s PYUSD, which has now risen to $2.4 billion.

Source: The Block

L2 adoption cracking new highs

Finally, Layer 2 (L2) adoption is also touching new highs, contributing to Ethereum’s long-term growth.

L2 solutions like Arbitrum, Base, Optimism, and Mantle are driving Ethereum’s scalability and adoption. This further supports the case for ETH’s price to move higher in the long term.

Source: growthepie

Next: Dogecoin’s next rally – DOGE whales will have their say and that means…

Source: https://ambcrypto.com/ethereum-to-4000-again-heres-why-you-should-look-out-for-eths-funding-rates/