The Ethereum market still witnesses several bullish metrics despite previous struggles and the latest ongoing pullback.
Ethereum‘s price struggles in recent years have been well documented, from underperforming Bitcoin and Solana in 2023 to failing to match their run to new all-time highs in 2024. Despite these struggles and a recent price correction, a CryptoQuant report suggests that key metrics continue to paint a bullish outlook for the altcoin.
A Bullish Ethereum Storm Brewing?
Over the past week, Ethereum’s price has dropped about 19% from highs around the $4,100 price point to trade around $3,300 at the time of writing amid a market wipeout led by the Federal Reserve’s hawkish pivot.
Still, Ethereum’s outlook remains significantly positive, at least according to a Monday, December 23 CryptoQuant report. Per the report, several key Ethereum metrics continue to paint a bullish picture of the asset.
Estimated Leverage Ratio
One such metric is the estimated leverage ratio. The ratio measures the balance of open interest in futures contracts on an exchange to its balance to determine the amount of leverage in a market. It can often help investors to gauge risk appetite.
According to CryptoQuant’s report, Ethereum’s estimated leverage ratio remains near record highs at around 0.53, signifying a strong risk appetite among investors.
The high-risk appetite amongst investors suggests they are not looking to reduce exposure to the asset.
Funding Rates
Beyond the estimated leverage ratio, the recent CryptoQuant report highlighted funding rates as another key Ethereum metric flashing green.
Funding rates refer to a payment exchanged between perpetual contract holders designed to incentivize price stability by keeping the futures market price close to the spot price.
Notably, funding rates are positive when the futures contract price is higher than the spot price, with long traders paying short traders. On the other hand, funding rates are negative when the contract price is lower than the spot price, with short positions paying longs.
CryptoQuant highlighted that Ethereum’s funding rate is moderately positive at 0.01, highlighting the potential for continued price growth with minimal liquidation risk.
Positive funding rates signify bullish market sentiment as it suggests that long traders are willing to pay a premium to hold their contracts.
Korea Premium Index
Another metric signaling bullish Ethereum momentum, according to CryptoQuant, is the Korea Premium Index.
The Korea Premium Index measures the difference between prices on Korean exchanges and other regions. It is often used as a yardstick to measure retail interest, as Korea is known for its large number of retail traders.
Retail interest is believed to be high when this index is at a premium and low when it is at a discount. The CryptoQuant report highlights that Ethereum’s Korea Premium Index is at a substantial premium, suggesting high retail interest.
However, it is not only retail investors that appear interested in Ethereum at current prices.
Ethereum Fund Holdings on the Rise
The final metric cited by CryptoQuant in its recent report is the balance of Ethereum on global funds, including spot Ethereum ETFs.
The crypto analysis platform shared a chart indicating that this metric has been rising since November 2024 and has not plummeted despite the recent market dip. This suggests confidence in Ethereum’s potential among institutional investors.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
