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The price of Ethereum is stabilizing above the $3,000 level, with key indicators predicting a potential rise towards the $4,000 level by 2025.
Rising funding rates indicate growing confidence in Ethereum’s recovery from recent market declines.
According to CryptoQuant, increasing withdrawals of ETH and increasing adoption of Layer-2 support bull market expectations.
Ethereum Remains Above $3,000 As Funding Rates Rise; This suggests that there could be a rally towards $4000 with increased acceptance of Layer-2 and a pullback of ETH.
Funding rates are an important indicator of market psychology in the futures market, revealing that trader behavior is changing with current Ethereum price stability. While Ethereum maintains a support level above the $3,000 level, increasing long positions in futures indicate a potential bullish trend for ETH.
Source: CryptoQuant
Rising funding rates are often seen as evidence of increased demand and reflect traders’ growing confidence in Ethereum’s ability to recover. If this trend continues, Ethereum could rise towards the $4,000 resistance level, driven by strong buying activity and more positive sentiment in derivatives markets.
Entering 2025, Ethereum is trading around $3,385. Current market indicators show slight negative momentum on the Relative Strength Index (RSI), reflecting cautious optimism. Meanwhile, the MACD histogram indicates declining bearish pressure, signaling a potential upside move.
Source: TradingView
Additionally, the increase in ETH withdrawals from exchanges indicates long-term accumulation trends, which are often interpreted as bullish behavior among investors. In the period after December, there was a significant increase in active Ethereum addresses; This coincides with the expansion of Layer-2 adoption by networks such as Optimism and Arbitrum, further reinforcing the positive trend.
If the current buying momentum continues, ETH has the potential to retest the $4,000 resistance level in early 2025. This scenario becomes more likely with a resurgence of institutional interest following significant electoral changes. However, it is important to consider broader economic conditions and Bitcoin price movements that will shape Ethereum’s medium-term outlook.
In short, Ethereum’s stability above $3,000, coupled with encouraging funding rates and increasing Layer-2 adoption, offers cautious optimism for 2025. As we head into the new year, traders and investors will be watching these indicators closely to gauge market psychology and macroeconomic factors that may influence ETH’s path to potential new highs.