Ethereum’s recent price surge above $4,300 has garnered attention from crypto analysts who believe that the cryptocurrency is displaying strong structural health. Despite this positive outlook, some experts caution that the lack of funding rates across exchanges may indicate low demand for ETH, potentially limiting its breakout momentum.
In a recent CryptoQuant Quicktake post by contributor ShayanMarkets, it was revealed that Ethereum’s funding rates on exchanges are relatively subdued compared to previous highs. For example, during the first major peak in early 2024, ETH funding rates spiked to 0.8, signaling excessive long positions and speculative demand. This led to a price correction as leverage became unsustainable for the digital asset.
In contrast, the 2025 rally saw Ethereum reach a new all-time high of $4,900 with lower funding rates, indicating a less speculative market environment. This divergence suggests that ETH is achieving new highs without the need for aggressive long positioning that fueled previous rallies.
ShayanMarkets pointed out two key implications of this divergence. Firstly, the market appears to be more spot-driven and structurally healthier without excessive leverage driving prices. However, the absence of aggressive demand could limit breakout momentum, requiring new order flow for further upward movement.
Despite Ethereum trading just 12% below its all-time high, some analysts predict a potential correction for the cryptocurrency. Analyst Ted Pillows forecasts a drop to $3,900 before the next rally. However, several data metrics point towards a potential bullish rally for ETH, including a low exchange supply ratio on major platforms like Binance and a negative exchange balance for Ethereum, indicating more tokens being withdrawn than deposited.
At the time of writing, ETH is trading at $4,334, up 0.6% in the past 24 hours. The cryptocurrency’s structural strength and potential for a supply crunch may support further price appreciation, although a correction remains a possibility. Investors should closely monitor market developments and key metrics to make informed decisions regarding Ethereum investments.