Ethereum is currently steady, trading above $2,500, but remains within a bearish pattern as indicated on the daily chart. A convincing close above $3,500 with high volume is needed to signal a trend shift.
The short to medium-term outlook appears bearish as funding rates in Ethereum perpetuals on exchanges like Binance and OKX have been positive but declining. This indicates a bearish sentiment among leveraged traders, increasing liquidation risks.
Funding rates reflect the sentiment in perpetual markets—positive rates indicate bullish outlooks while negative rates indicate bearish sentiments. Despite ETH moving up to $3,900, the dominant sentiment remains bearish due to falling funding rates.
A significant increase in buying interest is required to change this trend. Spot Ethereum ETF inflows in the United States, which totaled over $5.8 million according to Soso Value, could help lift prices and funding rates.
