Ethereum: Unprecedented Sustainability, But the Adjustment Could Shock Many Investors

Ethereum continues to maintain its strength as it trades around the 4,300 USD level, only about 12% lower than the historical peak of 4,900 USD. However, many analysts still express cautious views, suggesting that this upward trend is more stable and sustainable than before, but it also lacks a strong surge due to demand not being truly high. Market Structure Health of Ethereum

According to analysis from CryptoQuant (ShayanMarkets), the funding rate indicators ( of derivative contracts) on the exchange are currently quite low compared to previous bullish phases: Early 2024: The funding rate for ETH surged to 0.8 as the price peaked, indicating excessive leveraged capital inflow. As a result, ETH quickly underwent a significant correction afterward. Late 2024: ETH reached a similar price range, but the funding rate remained lower, making the market less speculative. However, due to the lack of strong momentum, the upward trend did not last long. Early 2025: ETH surpassed a new ATH of 4,900 USD with the funding rate still at a modest level. This reflects a significant difference: the price is being driven more by actual spot trading ( than by leverage, resulting in a healthier market structure. ShayanMarkets's opinion: Positive: The market is healthy and there is less risk of liquidation cascade ) than before. Negative: Due to the lack of "overly enthusiastic" demand, ETH may move slower and will need new cash flow to sustain the upward trend. Will ETH Enter a Correction? Some analysts warn that ETH may retreat to the 3,900 USD range before continuing its new upward cycle. Analyst Ted Pillows believes this is a potential support level for re-accumulation. However, there are still many on-chain signals supporting the bullish trend: The ETH supply ratio on the (Exchange Supply Ratio) has decreased to 0.037, the lowest in many months, indicating a significant reduction in selling pressure. The netflow on the (Exchange Netflow) has turned negative, meaning that the amount of ETH withdrawn from the exchange is greater than the amount deposited – a sign of supply scarcity. Conclusion Ethereum is in a state of balance between sustainability and lack of explosiveness. This increase is not based on high leverage but comes from real buying power, making the market more solid compared to previous periods. However, for ETH to break through the ATH of 4,900 USD and go further, the market needs stronger participation from new capital. Currently, ETH is trading around 4,334 USD, up 0.6% in the past 24 hours. Investors are advised to closely monitor price action and on-chain data to clearly determine the upcoming trend.