A crypto analyst is closely monitoring Ether’s funding rate, hoping for a rise above 0.015 to signal the end of a period of market stagnation and the start of a potential price rally.

A slight improvement in Ether trader sentiment could trigger an indicator pointing to a significant price jump and a potential bullish trajectory for the token.

“We’re watching for Ether’s funding rate to exceed 0.015 to see if it breaks this calm before the storm,” noted Burak Kesmeci, a CryptoQuant contributor, in a report on Sept. 12.

The funding rate, a minor market fee, helps align futures prices with spot prices and stabilizes perpetual contracts.

Positive Signals Needed for ETH Price Rally

A higher funding rate reflects growing optimism in the market, indicating that traders are more willing to invest in holding long positions.

“For another parabolic rise in Ether, we need positive signals. Support from the futures market is key to driving these rallies,” Kesmeci emphasized.

Ether’s current funding rate, around 0.0056%, mirrors the levels seen in September 2023, before climbing past 0.015. Kesmeci noted that reaching this threshold again is critical for tracking healthy increases during bull markets.

Following the funding rate surge in September 2023, Ether’s price jumped by 166% over the next six months, reaching $4,006 by March 13, according to CoinMarketCap.

Ether’s Recent Price Stagnation

Since Sept. 2, Ether has struggled to break past the $2,500 mark, a crucial price level for traders. Critics argue that Ether’s price has lagged behind Bitcoin, especially since the launch of spot Ether ETFs, which were anticipated to drive up its price.

Futures traders remain uncertain about Ether’s near-term potential to reach this level. Should it happen, roughly $576.28 million in short positions could face liquidation, according to data from CoinGlass.