As Ethereum (ETH) trades slightly above $4,300, some crypto analysts suggest that the current trend indicates sufficient structural health. However, they also caution that the muted funding rates across exchanges may suggest low demand for ETH, potentially limiting its breakout momentum.
Key Insights
- Ethereum's current funding rates are relatively subdued compared to its last three major highs.
- The 2025 ETH all-time high of $4,900 was achieved with lower funding rates.
- The current market appears healthier, not driven by excessive leverage.
- Analysts predict ETH could correct down to $3,900, but there are bullish signals.
- The ETH exchange supply ratio on major exchanges like Binance recently hit 0.037, potentially aiding in supply crunch.
In-Depth Analysis
According to CryptoQuant contributor ShayanMarkets, the current Ethereum market shows significant structural health. In prior peaks, funding rates spiked to 0.8, indicating excessive long positioning and speculative demand, which eventually led to price corrections. Recently, ETH reached new highs with relatively low funding rates, suggesting a less speculative market, where price increases stem largely from spot trading.This market performance could reshape investor confidence. While the absence of robust demand may limit breakout potential, the lower funding rates indicate enhanced resilience against sudden liquidation cascades. As ShayanMarkets noted, this divergence suggests that while ETH is maintaining price increases, it is in a phase that demands greater conviction from buyers.