'Extreme Positive': Ethereum (ETH) Back in Bull Market Mode

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. After recovering the $2,000 mark, Ethereum is displaying signs of strength, and data from the derivatives market now indicates a significant change in sentiment. The recent market-wide sell-off appears to have caused traders to quickly rotate back into risk, as evidenced by the spike in leveraged long positioning seen in funding rates across major exchanges. The BitMEX signal, where ETH funding has flipped into extremely positive territory, is the most noticeable. Positive funding rates — which usually indicate strong bullish conviction and aggressive leverage expansion — indicate that long traders are paying shorts to maintain positions open. The fact that Binance funding has moved from negative to neutral territory at the same time suggests that panic positioning and selling pressure are abating. But historically, this arrangement has presented both opportunities and risks. Strongly positive funding fueled by leverage expansion seldom sustains long-term upside, as analyst Amr Taha points out. Instead, it frequently raises the likelihood of abrupt corrections, particularly in the event that price momentum stalls or general market conditions deteriorate. Ethereum's current structure, practically speaking, indicates improving sentiment, but it remains in a precarious recovery environment. Volume expansion indicates that traders are willing to reenter the market after the price recently recovered from severe oversold conditions. The larger downward tr...