Ethereum has recently been on a strong uptrend, increasing investor optimism in the expectation that the price will continue to rise. The following chart depicts Ethereum's funding rate, which reflects the strength of buy and sell orders in the market. Positive values indicate bullish sentiment, while negative values indicate bearish expectations from futures traders.
After a period of price adjustments and funding rate reductions, both indexes increased significantly. If this trend continues, Ethereum could be on a long-term bullish trajectory.
However, although rising funding rates are consistent with a bull market, too high a value can cause difficulties. High ratios increase the likelihood of a long liquidation streak, leading to sharp price drops. Therefore, closely monitoring the funding rate is important during Ethereum's bullish phase.
