As Ethereum (ETH) trades slightly above $4,300, some crypto analysts opine that the cryptocurrency\u2019s current trend shows enough structural health. However, they also caution that a lack of funding rates across exchanges means low demand for ETH, which may limit its breakout momentum.<\/p>\n
According to a CryptoQuant Quicktake post by contributor ShayanMarkets, Ethereum\u2019s funding rates across exchanges are relatively muted when compared to the digital asset\u2019s last three major highs.<\/p>\n
For instance, during the first major high in early 2024, ETH funding rates across crypto exchanges had surged to 0.8, suggesting excessive long positioning and speculative demand. Shortly, the price topped out as overheated leverage took its toll on the digital asset.<\/p>\n
During the second peak in late 2024 \u2013 as illustrated in the following chart \u2013 ETH reached similar price levels but this time with far lower funding rates. Although this hinted at a less speculative market, the lack of strong, sustained momentum eventually weighed down on ETH\u2019s price.<\/p>\n
In contrast to the above two instances, ETH\u2019s 2025 rally saw it create a new all-time high (ATH) of $4,900 \u2013 despite relatively muted funding rates. This brings into focus one key divergence \u2013 ETH is hitting new highs even in the absence of aggressive long positioning that fueled earlier rallies.<\/p>\n
ShayanMarkets states there are two key implications of this new-found divergence. The analyst remarked:<\/p>\n
On one hand, the market appears more spot-driven and structurally healthier, as price is not being pushed by excessive leverage. On the other hand, the absence of aggressive demand also limits breakout momentum, leaving ETH in a slower-moving environment where new order flow will be essential for continuation.<\/p>\n
Concluding, the CryptoQuant contributor noted that ETH\u2019s higher highs against declining funding rates show that the current market is more resilient against sudden liquidation cascades. However, it also requires a lot more conviction from buyers to sustain the next leg higher.<\/p>\n
Although ETH is currently trading just about 12% below its ATH, some analysts forecast that the second-largest cryptocurrency by market cap may be headed for a correction. Crypto analyst Ted Pillows predicted<\/a> that ETH may drop all the way down to $3,900 before its next rally.<\/p>\n That said, there are several other data metrics that point toward a potential bullish rally for ETH. For instance, the ETH exchange supply ratio on major exchanges like Binance recently hit<\/a> a low of 0.037, which may aid in the so-called \u201csupply crunch\u201d for the digital asset.<\/p>\n