Ethereum has seen a boost, breaking past the $2,500 resistance level and trading at $2,631 following the 2024 US election. This price surge has sparked hope for a new bull run. However, analysts urge caution due to potential risks from the futures market's trends.
CryptoQuant analyst, ShayanBTC, notes rising Ethereum futures market metrics, like open interest and funding rates, indicating increased market participation and positive sentiment. While these trends are promising, they may also usher in volatility, posing risks of sudden price swings and long liquidation cascades if optimism becomes excessive.
Shayan advises investors to watch key indicators like open interest and funding rates to gauge market sentiment and manage risk effectively. These metrics suggest room for growth, but potentially heightened volatility could occur if market shifts lead to adverse price movements.
Analysts including Leon Waidmann assert a bullish outlook on Ethereum. With staking levels at all-time highs and ETH's exchange reserves at record lows, a looming supply squeeze may drive further price increases, supporting positive sentiment around Ethereum's future trends.
