burakkesmeci2024-09-11

Calm Before the Storm in Ethereum: Watch Out for the 0.015 Point in Funding Rates

Calm Before the Storm in Ethereum: Watch Out for the 0.015 Point in Funding Rates When we examine the funding rate data for Ether over the past year, we observe two similar periods of calm before the storm. Will September Tell a Similar Story? Looking at the data from September 2023, we can see that the funding rate hovered between 0.002 and 0.005. This is quite a low rate for a bull cycle. Following this, as the funding rate settled above 0.015 (supported by the futures market), we witnessed Ether’s price surge from the 1,500s to the 4,000s. As we now look at September 2024, we notice that the funding rate has been at a similar level for nearly a month, starting from August. Is the calm before the storm about to break? ✅ Conclusion I can’t say if history will repeat itself, but there’s certainly a rhythm to it. From our past experiences, we know that after the quiet (and holiday-filled) summer months, the crypto market tends to pick up in the last quarter. To see another parabolic rise in Ether, we need positive signals. The support from the futures market plays a significant role in such rallies. We will wait for Ether's funding rate to rise above 0.015 to see if the calm before the storm breaks. A move above this level in funding rates is crucial for tracking healthy increases during bull markets.