Analysts Say ETH Price Could Breakout After 981 Days Of Consolidation

Funding rates for Ethereum are soaring to levels not seen since the January 2024 rally. Analysts are predicting that the consolidation could break after 981 days. However, the ETH price stalls at crucial resistance at $4,100, where short liquidation could spark volatility.

Ethereum’s Funding Rates Surge Amid Growing Optimism

Traders have become more optimistic about ETH price rise. This is because the funding rates for the Ethereum contracts have been rising to levels not seen since January 2024.

A surge in this kind of volume could mean a lot of traders are taking a long position [buying on the hope that ETH prices continue to rise].

Yet those elevated funding rates frequently point to short-term corrections in the making. They hint that Ethereum’s current bullish trend may see a pullback.

High funding rates historically signaled overleveraged positions in the market, and those led to volatility.

These conditions increase the risk of sudden correction and thus put pressure on the Ethereum market.

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Therefore, as long as traders continue to bet on more growth, there is an increased likelihood of price retracement, and funding rates serve as a warning signal.

Currently, funding rates are surging higher, indicating that traders are becoming increasingly optimistic about Ethereum price future.

History shows that high funding rates often go hand in hand with market pullbacks. Given this, it is crucial to be watchful to prevent being caught in a correction of a market.

Ethereum’s 980-Day Cycle Indicates Bullish Breakout

As Ethereum tackles a ripening 980-day consolidation pattern, we may be on the brink of a major breakout.

Analysts pointed out that the recent price action resembled what happened in the 2018-2021 period before a major bull run.

Just as in the previous cycle, the current consolidation since 2022 mirrors the same and further fanned the bullish expectations.

If it does so, it follows a similar pattern to what happened during the previous 980-day cycle, where Ethereum proceeded to completely blast to new all-time highs, so these patterns often lead to lots of price growth.

However, with Ethereum battling a test of a major resistance level, traders are now eagerly watching Ethereum’s price as a breakout could push into a new rally.

A breakout of these levels will be needed for such an upward trend to be confirmed.

While the general focus is on Ethereum all but breaking this resistance, the market is eyeing whether history will repeat itself.

This cyclical pattern could be confirmed with a breakout above the resistance level. This would then open the door for a big upside move.

Short Liquidations Rise as ETH Price Approaches $4,100 Resistance

Eth price is attempting to clear out a significant resistance level around $4,100, where short positions are moving right into liquidation.

The liquidation heatmap indicates that there are a heap of sizable short positions around the $3,800 – $4,000 price range at risk of getting forced out.

Toward $4,100, a breakout could trigger cascading short liquidations, propelling the price upward.

Now, this buildup of short positions indicates this possibility of a very fast rise in the price if the resistance is broken.

One particularly vulnerable to being liquidated is the traders holding short positions, which could add pressure to the market.

If liquidations continue to intensify, this could cause ETH Price to spike upwards and could increase general volatility in the short term.

The $4,100 level could propel Ethereum to new heights upon breaking it, as the progression could also trigger millions of worth of liquidations.

With liquidations and bullish pressure working together, expect the market to become a rollercoaster of sorts, but one with some tasty profit opportunities.