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Writer's picturemeowdini
Sep 132 min read

Ethereum Poised for Parabolic Surge: Key Indicator Shows Market on the Verge of Breakout

Ether traders eyeing a critical funding rate level that could trigger a significant price rally for Ethereum. Could this be the start of ETH’s parabolic rise?

Ethereum (ETH) is on the brink of a major breakout, according to key market indicators. Analysts are closely watching Ether’s funding rate, with predictions that if it rises above 0.015, it could spark a parabolic price surge. After months of stagnation, ETH traders are eager for signs that the "calm before the storm" is about to end. Will Ether finally break past $2,500 and embark on a bull rally?


Ethereum logo.
Ether traders are eyeing a key funding rate level, which could trigger a parabolic price rise if surpassed.

Key Points:


  1. Key Funding Rate Threshold: Crypto analyst Burak Kesmeci highlights that Ether’s funding rate must rise above 0.015 to confirm strong market sentiment and trigger a potential price spike.


  2. Market Sentiment Crucial for Bull Rally: A higher funding rate indicates traders are willing to pay a premium to maintain long positions, signaling a more optimistic market and setting the stage for a rally.


  3. Past Performance as a Guide: In September 2023, a similar rise in the funding rate led to a 166% price increase over the following six months, reaching $4,006 in March 2024.


  4. Ether’s Price Struggles to Break Key Levels: Despite recent gains, ETH has been unable to close above the $2,500 mark since Sept. 2, which traders see as a crucial threshold.


  5. Short Positions at Risk: If Ether’s price moves past $2,500, around $576 million in short positions could be at risk of liquidation, according to CoinGlass.


  6. Lagging Behind Bitcoin: ETH has struggled to keep pace with Bitcoin, especially as market participants were hopeful that the introduction of spot Ether ETFs would boost its price.




As Ethereum traders anticipate a possible parabolic rise, all eyes are on its funding rate. A move above 0.015 could signal the start of a long-awaited rally. However, with Ether struggling to break through $2,500, and short positions stacking up, the market remains at a crossroads. Will Ether surge as it did in 2023, or will it continue to trail behind Bitcoin?


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