Ethereum

bullish

<p>Holders have been curious as to whether ETH price can maintain bullish momentum in December. </p> 
<p>Although <a href="https://www.thecoinrepublic.com/2024/12/03/doge-top-holder-snags-1-5m-coins-for-400k-a-power-move-or-just-the-start/">bullish expectations</a> remain high in light of market recovery, short term pullbacks are expected.</p> 
<p>ETH in particular, could be on the verge of a bearish retracement judging by its latest price action. </p> 
<p>Bullish momentum has slowed own since the start of December, but more than that, the cryptocurrency appeared to be forming a bearish price-RSI divergence.</p> 
<p>ETH bulls continued to hold strong in the last 3 weeks or so. Meanwhile, the RSI has been achieving lower highs, forming a bearish divergence.</p> 
<div class="wp-block-image"> 
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  <img loading="lazy" decoding="async" width="1013" height="585" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-113.png" alt="" class="wp-image-865492" style="width: 100%;height:auto" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-113.png 1013w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-113-300x173.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-113-768x444.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-113-150x87.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-113-696x402.png 696w" sizes="auto, (max-width: 1013px) 100vw, 1013px">
  <figcaption class="wp-element-caption">
   ETH price action / source: TradingView
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</div> 
<p>Directional uncertainty is usually high at the start of the month. The formation of a bearish divergence after a strong rally signals a high probability that a pullback may occur.</p> 
<h2 class="wp-block-heading" id="h-eth-price-why-bulls-are-still-holding-on-to-dominance"><strong>ETH Price: Why Bulls are Still Holding on to Dominance</strong></h2> 
<p>Despite the bearish expectations, the strong bullish momentum in November raised hopes of more upside in the coming months. </p> 
<p>A noteworthy outcome is that investor sentiment may remain strong even when bearish signs appear.</p> 
<p>A classic example of such a scenario is the fact that ETH funding rates were mostly positive in November. That trend has remained so in the first 4 days of December.</p> 
<div class="wp-block-image"> 
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  <img loading="lazy" decoding="async" width="1024" height="246" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-115-1024x246.png" alt="" class="wp-image-865504" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-115-1024x246.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-115-300x72.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-115-768x185.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-115-150x36.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-115-696x167.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-115-1068x257.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-115.png 1336w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   ETH funding rates / source: Coinglass
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<p>ETH price did not demonstrate any signs indicating potential sell pressure. This was further supported by the fact that open interest remained high and close to its recent 2024 peak.</p> 
<p>ETH demand in the spot market also reflected the outcome of the derivatives market. </p> 
<p>It had net positive inflows worth $284.79 million on 4 December, building on $252.69 million observed in the previous day.</p> 
<p>Positive spot and derivatives flows indicate that ETH was still able to command heathy demand. This was also backed by positive ETF flows in the last 2 days. </p> 
<p>A short squeeze scenario may also be playing out as price soars higher contrary to rising bearish expectations.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full is-resized">
  <img loading="lazy" decoding="async" width="587" height="553" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-116.png" alt="" class="wp-image-865512" style="width: 100%;height:auto" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-116.png 587w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-116-300x283.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-116-150x141.png 150w" sizes="auto, (max-width: 587px) 100vw, 587px">
  <figcaption class="wp-element-caption">
   Ethereum ETF flows / source: Farside.co.uk
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<p>Ethereum ETFs added $132.6 million worth of the cryptourrency into their portfolios. This was a build-up from the $24.2 million ETF inflows recorded on Monday. </p> 
<p>While these were not the best daily inflows observed recently, they highlighted the fact that the bulls were still dominant.</p> 
<h2 class="wp-block-heading" id="h-a-bull-trap-in-the-making"><strong>A Bull Trap in the Making?</strong></h2> 
<p>The previously mentioned bearish divergence indicates potential downside for ETH price in the coming days. As a result, short positions were likely to rise this week.</p> 
<p>Coinglass data revealed that $48.89 million worth of shorts were liquidated in the last 24 hours. Meanwhile, only $14.11 million in long positions were liquidated during the same period.</p> 
<p>On-chain data also revealed that large holder outflows were slightly higher than large holder inflows. </p> 
<p>According to IntoTheBlock, outflows peaked at 647,220 ETH while inflows peaked at 582710 ETH as per the latest data.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-large is-resized">
  <img loading="lazy" decoding="async" width="1024" height="340" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-117-1024x340.png" alt="" class="wp-image-865521" style="width: 100%;height:auto" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-117-1024x340.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-117-300x100.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-117-768x255.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-117-150x50.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-117-696x231.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-117-1068x355.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/12/image-117.png 1098w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   ETH large holder flows / source: IntoTheBlock
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 </figure>
</div> 
<p>The above data indicates that sell pressure from whales recently outpaced buying pressure from the same category. </p> 
<p>This could signal that sell pressure was on the rise, potentially foreshadowing more sell pressure ahead. In summary, a retracement based on the above findings is probable. </p> 
<p>However, it is also worth noting that <a href="https://www.thecoinrepublic.com/2024/12/03/bitcoin-price-in-parabolic-mode-analyst-explains-why-we-are-still-early/">strong demand</a> may disregard the rules of the game, potentially resulting in an unanticipated outcome for ETH price.</p> 
<p>The post <a href="https://www.thecoinrepublic.com/2024/12/05/ethereum-positive-funding-rates-surge-as-eth-price-turns-bearish/">Ethereum Positive Funding Rates Surge As ETH Price Turns Bearish</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.</p>

Ethereum Positive Funding Rates Surge As ETH Price Turns Bearish

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