The present trajectory of Ethereum, which is trading just around $4,300, suggests sufficient structural health, according to several cryptocurrency specialists. Nonetheless, they warn that the absence of funding rates on various exchanges indicates weak demand for ETH, potentially constraining its breakout momentum. Ethereum’s Recent Surge Demonstrates Robust Foundations.
Ethereum’s funding rates across exchanges appear to be relatively subdued in comparison to the digital asset’s last three significant peaks. For example, during the first significant peak in early 2024, ETH funding rates on all cryptocurrency exchanges had risen to 0.8, indicating speculative demand and excessive long posture. In brief, the price reached its peak as excessive leverage impacted the digital asset. In the second peak of late 2024, as shown in the chart below, ETH attained comparable price levels, but this time with significantly reduced funding rates. While this suggested a market with reduced speculation, the absence of robust, lasting momentum ultimately impacted ETH’s price negatively. Unlike the previous examples, ETH’s 2025 surge resulted in a new all-time high of $4,900, even with funding rates remaining relatively subdued. This highlights a significant divergence – ETH is reaching new highs despite the lack of aggressive long positioning that previously drove rallies.
The market seems to be more spot-driven and structurally healthier, with prices not being influenced by excessive leverage. Conversely, the lack of strong demand restricts breakout momentum, placing ETH in a more subdued environment where fresh order flow will be crucial for further movement. In conclusion, the ETH’s higher highs in the context of declining funding rates indicate that the current market demonstrates greater resilience to abrupt liquidation cascades. Nonetheless, it demands significantly greater confidence from purchasers to maintain the upcoming upward movement. Even while ETH is just around 12% off its all-time high, some analysts predict that the second-largest cryptocurrency by market capitalization could be poised to undergo a correction. According to Ted Pillows, ETH may go as low as $3,900 prior to its subsequent surge.
There are several other data metrics that indicate a potential bullish rally for ETH. One factor contributing to the alleged “supply crunch” for the digital currency is the recent low of 0.037 for the ETH exchange supply ratio on well-known exchanges like Binance. In related developments, the Ethereum exchange balance has recently dipped into negative territory for the first time, indicating that withdrawals of tokens from exchanges are outpacing deposits.