🚀 Ethereum is now in a critical demand zone after falling below $2,300. Despite the risk of further decline in value, the dynamics of the Ethereum futures market show important analysis of the funding rate, which is a leading indicator.

According to CryptoQuant's latest analysis, this shows an increase in funding rates in line with the rise in Ethereum prices, indicating bullish sentiment in the market. However, caution is warranted as high funding levels could indicate an overheated market, potentially leading to a long-squeeze event.

After a short-term correction, there was a big drop in the funding rate. The on-chain intelligence platform said this drop shows that sentiment remains bullish and the market is starting to cool down from its previous overheated state.

This change in sentiment opens up opportunities for Ethereum prices to rise, with the market experiencing a corrective phase. It also indicates a moderation in aggressive trading, giving the market a chance to stabilize before resuming its rise.

So, there is potential for Ethereum price to continue rising after the correction phase is over. Come on, share your opinions in the comments column! 😄

Source: CryptoPotato