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ethereum is finally seeing a notable rally in its price as the second-largest cryptocurrency by market capitalization, which continues to break through important resistance levels.
Following its upward trajectory, seeing an increase of almost 10% in the last week, <a target="_blank" href="https://cryptoquant.com/insights/quicktake/674855f73f3c6a3c5870f9fb-ethereum-Rally-Gains-Momentum-Funding-Rates-Signal-Bullish-Sentiment-with-Room-f” target=”_blank” rel=”nofollow”>discussions that ethereum could hit a new all-time high by the end of the year gained momentum.
Notably, in line with the current eth rally is renewed interest in ethereum futures, with market metrics pointing to bullish sentiment among traders.
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More room for growth?
A CryptoQuant analyst known as ShayanBTC recently shared his view on the current ethereum rally, emphasizing the role of funding rates, a crucial metric in futures trading. Funding rates reflect trader sentiment and indicate whether the market is predominantly bullish or bearish.
According to Shayan, ethereum funding rates have seen a notable rally in recent weeks, suggesting that demand for long positions is growing.
Despite this bullish sentiment, the analyst mentioned that funding rates remain below ethereum's previous all-time high of $4,900, indicating that it “has not yet entered an overheated state.”
Meanwhile, while indicative of bullish sentiment, funding rates also act as a warning sign about potential market corrections. Historically, sharp increases in funding rates have been followed by sudden market corrections or cascades of liquidations.
However, Shayan notes that ethereum's current funding rates are still manageable, implying that the market has more room to grow before such risks become critical.
ethereum Market Performance and Outlook
ethereum is currently experiencing an upward trajectory, posting notable double-digit gains of approximately 15.6% over the past two weeks. This bullish performance has propelled eth past the critical $3,500 resistance level, setting its sights on the next major resistance at the $4,000 mark.
ethereum is currently trading at $3,563, reflecting a 1.3% increase in the last 24 hours. However, this price represents a slight pullback from its 24-hour high of $3,682 recorded today.
Furthermore, ethereum's current price is only 26.78% below its all-time high of $4,878, highlighting its gradual recovery within the market.
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Regardless of the bullish sentiment, Coinglass data shows that in the last 24 hours alone, 98,389 traders have been liquidated, with a total liquidation of $278.03 million.
Of this total amount of liquidations, ethereum accounts for approximately $63.33 million, of which $40 million of this liquidation comes from short positions and $23.3 million from long positions.
Amidst ethereum's current price performance, renowned crypto analyst known as Ali on <a target="_blank" href="https://twitter.com/ali_charts/status/1861917671333216569?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>reiterated your goal for eth. Ali said the medium-term target remains $6,000 and the long-term target $10,000.
<blockquote class="twitter-tweet”>
Our medium-term objective to <a target="_blank" href="https://twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>#ethereum <a target="_blank" href="https://twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>$eth It's still $6,000… Long-term goal: $10,000! https://t.co/X4lodGGIVY pic.twitter.com/siQsJzelzE
—Ali (@ali_charts) <a target="_blank" href="https://twitter.com/ali_charts/status/1861917671333216569?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>November 27, 2024
Featured image created with DALL-E, TradingView chart
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