TLDR
- Ethereum funding rates are at low levels, potentially signaling an upcoming price surge
- ETH’s technical analysis shows a bullish outlook with potential targets of $3,500-$3,600 near-term
- Daily gas usage on Ethereum hit an all-time high of 109 billion on September 1st
- On-chain stablecoin volume reached a record $1.46 trillion, more than doubling from earlier this year
- Layer 2 adoption continues to grow, supporting Ethereum’s long-term scalability and adoption
Ethereum, the second-largest cryptocurrency by market capitalization, is showing signs of potential price growth as several key metrics improve.
Analysts are closely watching Ethereum’s funding rates, which have historically preceded significant price movements.
Currently, Ethereum’s funding rate is hovering between 0.002 and 0.005, a level similar to what was seen in September 2023 before a major price rally.
If the funding rate surpasses 0.015, as it did in previous bull markets, it could signal the start of a new upward trend for Ethereum’s price.
The last time Ethereum’s funding rate hit this level, its price surged from $1,500 to over $4,000. While past performance doesn’t guarantee future results, this pattern has caught the attention of market observers.
Ethereum’s technical analysis also points to a potentially bullish outlook. The cryptocurrency has been consolidating within a broadening wedge pattern, with its Relative Strength Index (RSI) showing a strong bullish divergence.
This suggests that Ethereum may soon test higher price levels, with some analysts projecting potential targets of $3,500 to $3,600 in the near term.
On-chain data further supports the case for Ethereum’s growth. On September 1st, daily gas usage on the Ethereum network hit an all-time high of 109 billion, despite relatively low gas prices in recent weeks. This milestone indicates that network activity remains robust, countering claims that Ethereum’s influence might be waning.
Additionally, Ethereum’s on-chain stablecoin volume has reached a record high of $1.46 trillion, more than doubling from $650 billion earlier this year.
DAI led the stablecoin market with $960 billion in volume, while USDT and USDC continued to maintain significant market shares. This increase in stablecoin volume is attributed to growing demand in decentralized finance (DeFi) and increased involvement from traditional finance sectors.
#ETH/USD
Imo we are at the end of the $ETH correction💁♂️
Looking for some consolidation above the Key Zone + 200 MA & 200 EMA confluence
Break above $2500 will serve a confirmation of the beginning of the rally🚀#Ethereum turned to be a heavy asset so $10k target is rather… pic.twitter.com/jjGPPUHWE3
— Alex Clay (@cryptclay) September 9, 2024
Layer 2 (L2) solutions built on top of Ethereum are also seeing increased adoption, contributing to the network’s long-term growth prospects.
Platforms like Arbitrum, Base, Optimism, and Mantle are driving Ethereum’s scalability and adoption, potentially supporting higher prices for ETH in the future.
Despite these positive indicators, Ethereum’s price has remained relatively stable in recent weeks, trading below the $3,000 mark. As of the latest data, ETH was priced at $2,331, showing a slight 0.7% increase over the past 24 hours but a 2.7% decline over the past week.
Market participants are now watching for a potential break above the $2,500 level, which some analysts believe could confirm the beginning of a new rally.
As the final quarter of the year approaches, traditionally a time of increased trading volume and price movements in the crypto market, all eyes will be on Ethereum to see if these improving metrics translate into significant price action.
