Ethereum, the second-largest cryptocurrency by market cap, has seen its price rise to $2,420 after a recent rally. The price has increased by 3.4% in 24 hours and by 6.3% over the past week. These movements have raised hopes for a bullish trend that could push Ethereum's price above $4,000.
One significant development is the surge in stablecoin transaction volumes on the Ethereum blockchain, which hit a record $1.46 trillion. This rise in activity strengthens Ethereum's role in the DeFi space, potentially increasing demand for ETH tokens and driving up the price.
Another factor is the funding rate, a metric that tracks the cost of holding long or short positions in perpetual futures markets. Currently, Ethereum's funding rate is nearing the 0.015 point, reminiscent of the low rates seen in September 2023. Such a rate movement could indicate a major bullish trend.
According to Santiment, the Ethereum network has also experienced significant growth, reaching a four-month high. This growth includes an increase in the creation of new wallet addresses and active addresses, further solidifying Ethereum's foundational role in DeFi and NFT markets.
With these factors aligning favorably, Ethereum could see its price move closer to the $4,000 mark in the coming months.
