Signs that Ethereum (ETH) is about to enter a strong price increase!
According to an analyst from CryptoQuant, Ethereum's funding rates are showing an upward trend, signaling the possibility of a strong price increase for this coin.
Although Bitcoin has dropped to $59,000 after experiencing strong selling pressure at $69,000, Ethereum has remained stable and bullish against BTC - currently trading around the $3,800 mark.
The analyst attributed ETH's recent rise to investor confidence and increased buying activity.
Specifically, funding rates in ETH are currently positive, similar to the end of 2020, before Ethereum entered a strong rally to an all-time high.
However, the analyst also warned that funding rates rising too high could lead to the risk of long position liquidation and unexpected price adjustments.
Therefore, investors should closely monitor funding rates and manage risk effectively to assess market conditions and predict potential price fluctuations.
