The recent four-month rally in Ethereum mirrors the price increase that occurred from October 2023 to March 2024, which lasted about five months.
However, the pattern of the futures market funding rate is showing a completely different trend. During the previous rally(2023-2024), funding rates surged sharply, whereas in the current rally, there has been no overheating in funding rates. In fact, the current funding rates are closer to the levels seen before the October 2023 rally began.
Conclusion:
A cooldown after a short-term surge is essential. Once this brief rally takes a breather, Ethereum is likely to enter a full-fledged rally, accompanied by a sharp rise in funding rates.
Written by CoinCare
