Ethereum (ETH) Has Surged Over 40% in the Past Two Weeks

Ethereum (ETH) has surged over 40% in the past two weeks, trading in the mid-$2,000 range at the time of writing.

This news article on Benzinga provides an interesting perspective on the Ethereum (ETH) rally, highlighting the role of spot market demand in the recent price surge.

The article mentions that ETH has risen more than 40% in the past two weeks, trading in the mid-$2,000 range. However, despite this significant rally and the massive liquidations that occurred during the crypto market downturn, which began in early 2022, funding rates for ETH have remained ‘relatively flat.’

This finding, observed by CryptoQuant analyst ShayanMarkets, may indicate that the current momentum in the ETH market is driven mainly by spot market demand rather than leveraged trading.

This finding is an encouraging sign that could bode well for the sustainability of the ongoing bull run.

ETH Funding Rates Remain Flat Amid Rally, Suggesting Upward Action Is Being Driven By Genuine Buying In The Spot Market- CryptoQuant

During the past year, ETH has largely lagged behind other major cryptocurrencies, including Bitcoin (BTC), Solana (SOL), and XRP. Yet, recent data suggest that ETH is now showing signs of an organic uptrend.

After lagging behind other major cryptocurrencies like Bitcoin (BTC), Solana (SOL), and XRP for much of the past year, ETH is now showing signs of an organic uptrend. According to CryptoQuant analyst ShayanMarkets, the current momentum appears to be primarily spot-driven, rather than fueled by speculative futures trading.

This observation is supported by the fact that ETH funding rates have remained ‘relatively flat’ despite the recent price surge, as highlighted by ShayanMarkets in a recent CryptoQuant Quicktake post.

To elaborate, funding rates are periodic payments exchanged between traders in perpetual futures contracts to keep the contract price aligned with the spot price of the asset. Positive funding rates indicate that long positions are paying shorts, typically signaling bullish market sentiment, while negative rates suggest bearish sentiment.

In the case of Ethereum, flat funding rates during this recent rally indicate that the upward price action is being powered by genuine buying in the spot market, not speculative leverage. This makes the uptrend less prone to sudden reversals triggered by mass liquidations.

As ShayanMarkets noted, “Still, for the bullish momentum to be sustained and validated, funding rates should begin to rise, reflecting increased confidence and more aggressive positioning by futures traders.”

Meanwhile, other analysts predict further upside for ETH. For instance, noted crypto analyst Ali Martinez remarked that if ETH can decisively break through the $2,380 resistance level, then it could enter a new bull rally.

In his latest X post, Martinez emphasized that ETH’s new critical support range lies between $2,060 and $2,420. Close to 10 million wallets hold more than 69 million ETH between these levels.

New ETH ATH On The Horizon?

Although Ethereum remains well below its all-time high (ATH) of $4,878, which was reached in November 2021, many market watchers believe a new ATH for the second-largest cryptocurrency by market cap could be on the horizon.

In the same vein, crypto analyst Titan of Crypto recently noted that ETH is following a V-shape recovery. The analyst shared the following weekly chart that compares BTC and ETH price action, predicting that ETH is likely to follow BTC’s trajectory.

Moreover, in a recent interview, Mikkel Venezio, Head of Strategy at Vetti, discussed five bullish factors that could push ETH to $12,000 in 2025. These factors include favorable regulatory developments and strong inflows into spot exchange-traded funds (ETFs).

At press time, ETH trades at $2,555, up 3% in the past 24 hours.