💥Ethereum (ETH), the second-largest cryptocurrency, has failed to return to the $3,000 price level since early August. However, there may be positive signs for the coin in the near future.

👉An analyst from blockchain analytics platform CryptoQuant pointed out that if the inflow into the Ethereum futures market continues to increase, the price of ETH could improve.

💥Funding Rate Drives ETH Price Recovery

👉According to analysts, the futures market has a big influence on the price of digital assets. If there are many buy transactions in this market, it shows that investors are interested and expect the price to increase. Conversely, if there are many sell transactions, the price may decrease.

👉The chart provided by the analyst shows Ethereum's funding rate, which is used to determine whether traders are buying or selling. Over the past 30 days, ETH futures traders have been more bullish, indicating that they are bullish on the coin's price.

💥Important note

👉While the analyst is optimistic that ETH could rally, they caution that: “For ETH to continue its recovery and reach higher prices, demand in the perpetual futures market needs to continue to increase in the coming weeks. If funding rates maintain their upward trend, ETH prices could continue to rise in the medium term.”

👉This means that ETH futures traders must maintain a positive sentiment for the coin's price to increase. If there is a sharp drop in the funding rate, the ETH price may stagnate.

💥Current Ethereum Price Situation

ETH is currently trading around $2,600, down 16% from $3,100 at the beginning of August. Ethereum's price has remained in this range for nearly two months, despite outflows from Ethereum ETFs in the US.