Key Insights:
- ETH is forming a base around the $1800 level, and the price is already in a skeptical zone.Â
- The Ethereum Funding Rate 50 and 200-day moving averages show a deadcross decline.
- Ethereum sees a large number of failed transactions. Â
Ethereum stayed close to $1,800 while it tried to develop support within an unstable market segment. A breakdown through support would possibly drive prices down toward $1,502. It was followed by $1,340 as the next critical support zone.
ETH could have experienced additional bearish pressure. This would have propelled its price toward $1,340 if the negative trend remained.
ETH could reignite its bullish trend by surpassing the $2,015 resistance level. At its current price of $1,800, establishing this area as support is crucial.
Recovering $2,015 successfully at this stage could have launched a price movement toward resistance levels at $4,104 and $4,110 with a comprehensive target of $4,817.
The analysis indicated a long-term investment opportunity at $1,800. Savvy investors are likely to enter during this accumulation phase. ETH price would have moved upward if investors had eventually taken hold of the sell orders to establish positive price momentum.
The selling pressure would have subsided if investors had maintained the $2,015 support level. However, selling strength grew as the price fell from this level, resulting in lower support zones.
A higher low break would enable a bullish breakout. The future direction of ETH’s major trend could become clear through confirmations of support or breakdowns.
Ethereum Funding Rate Forms a Death Cross
Additionally, the Ethereum funding rate displayed worrisome behavior as the 50-day and 200-day simple moving averages crossed each other. Going forward, this indicated increased speculator caution.
By February 2025, the funding rate settled at 0.005, marking a drop from its peak of 0.04 in April 2024. This decline followed a notable reduction in leveraged positions.
Speculators avoided risk during May 2024 at 0.025 and November 2024 at 0.015. Investors concluded that the dead cross affected ETH’s value drop. It declined from $4.25K in April 2024 to $1.81K by February 2025.
The market showed potential for a price increase when aggressive leveraging by speculators did not resume. Ethereum price might climb to $3K if the funding rate hits 0.03 in mid-2024. This shift in the funding rate signals stronger bullish market sentiment.
The consistent decrease in the funding rate indicated bearish pressure will probably be sustained. This way, it maintains Ethereum price at low levels for the upcoming period.
Failed Transactions Count for Ethereum Escalating
ETH’s market rate experienced a significant drop in mid-2022. This decline, from $1800 to under $1000, was closely linked to the rise in transaction failures.
ETH is experiencing another surge in failed transactions at press time. This could signal a continuation of its price decline.
In July 2022, Ethereum price fell. However, the total number of unsuccessful transactions increased to 400,000. The dramatic rise of failed transactions during price diminution implied that particular market actors attempted to participate in blockchain transactions.
The failed transaction data indicated that many failed transactions often appeared before possible market price fluctuations. During January 2023, when the number of failed transactions hit 550K, a price recovery phase began below $1200.
The times when many failed transactions occurred together with price trend preservation became visible through the presented chart. Throughout late 2024, the price moved downward despite multiple failed transaction distributions above 500K, and it declined to $1600.
Price growth for Ethereum could strengthen when failed transaction counts decrease notably during market upticks.