Crypto: Will The $3,000 Support Save Ethereum?

The crypto market has its roller coasters, and Ethereum seems stuck between two loops. Despite a recent bullish rally in the altcoin universe, ETH is dangerously wavering. Stuck below the $4,000 mark and clinging to its precious support at $3,000, it is attracting the attention of crypto traders. The Funding Rates, crucial indicators of the derivatives market, oscillate between hope and disillusionment, further complicating the reading of this key piece in the crypto landscape.

Why Ethereum bets it all on the $3,000 support

Ethereum is currently going through a zone of turbulence that tests its bullish ambitions, everything seems to fall apart. Despite a general market rebound, the second-place altcoin struggles to surpass critical thresholds.

At the center of this dance of numbers: the Funding Rates, these indicators of the morale of the troops on the trading side of derivatives. They have recently played a roller coaster, going from optimistic signals to a disconcerting plunge after Ethereum’s failure to exceed $4,000.

The level of $3,000 now appears to be the dam that must not break. If this barrier breaks, the scenario of a bearish tidal wave would become credible.

“Reclaiming higher Funding Rates and defending the $3,000 level is essential” explains ShayanBTC, analyst for CryptoQuant.

Otherwise, the correction could intensify, turning hope into a mirage for crypto traders.

It should also be noted: the 30% increase in daily trading volumes, which now exceeds $26 billion. Perhaps a thrill of optimism for some, but beware of the illusion.

Crypto traders in the fog: collapsing Funding Rates

Navigating the world of crypto trading is a bit like surfing on electrified waves. Take Ethereum: its inability to consolidate its position above $3,500 has dampened investor morale. While the initial surge in Funding Rates suggested a revival of confidence, their recent plunge reveals a less rosy reality: traders’ interest is waning, and with it, ETH’s ability to regain its momentum.

BULLISH MACD CROSSOVER FLASHING ON $ETH!!

Momentum for Ethereum is shifting!! pic.twitter.com/8nKOZM9r2b

— Merlijn The Trader (@MerlijnTrader) January 10, 2025

Here are a few figures to illustrate the complexity of the moment:

• Ethereum shows a decline of 6.2% over the last week;
• The current ETH price: around $3,200, or 33.9% below its all-time high of $4,878;
• A marginal increase of 0.9% over 24 hours, but nothing substantial enough to reverse the trend.

Have speculators become timid, or are they simply waiting for the storm to pass? In this universe, patience and audacity play with traders’ nerves. One thing is certain: altcoins and Ethereum still have battles to fight before convincing again.

Moreover, experts like Dr. Sean Dawson remain optimistic, predicting a magical surge for Ethereum this year. He even dreams of an ETH at $12,000 thanks to an unexpected influence: that of Trump.