The perpetual futures market plays a significant role in driving market price movements, making it essential to assess the sentiment of futures traders for clues about potential price trends. This analysis focuses on Ethereum’s 30-day moving average of funding rates, a key metric that provides insight into whether buyers or sellers are more aggressive in executing market orders within the futures market.
Recently, the 30-day moving average of ETH funding rates has shown a slight bullish shift after a prolonged period of decline. This shift has coincided with a broader market rebound and an uptick in Ethereum's price, suggesting a possible change in market sentiment. The rise in funding rates indicates an increase in buying activity among futures traders, signaling that market participants may be turning more bullish.
For Ethereum to continue its recovery and target higher price levels, the demand in the perpetual futures market must keep rising in the coming weeks. A sustained uptrend in the funding rates could drive further price surges in the mid-term. However, this bullish sentiment will need consistent follow-through from buyers to maintain momentum, as any significant reversal in funding rates could stall Ethereum's price growth.
Written by ShayanBTC
