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Ethereum ETH has seen price volatility over the past seven days as it struggles to return to the $4,000 level. Despite Ethereum's obvious difficulties, there may be a recovery on the horizon for the leading altcoin.
Positive metrics indicate market optimism
CryptoQuant, a leading on-chain data provider, highlighted some important metrics in mail On X which indicates a cautiously optimistic outlook for Ethereum. Notably, CryptoQuant pointed to four indicators that point to a potential positive future for ETH.
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According to the charts, Ethereum's estimated leverage ratio has reached its peak. This indicates that traders and investors are willing to take risks in the Ethereum derivatives market. The implication is that investors' confidence in the assets' ability to generate profits for them has not diminished.
Meanwhile, Ethereum funding rates remain somewhat positive as traders continue to bet on rising prices. These traders have taken long positions even though interest rates are not excessively high. However, this development indicates a reduction in the risks of volatility caused by liquidity and the potential for price growth.
Moreover, the Korean Premium Index is positive, with a large premium on South Korean exchanges. This surge in demand for ETH may impact global market sentiment and spark general optimism which may impact the price.
Can ETH price reach $5,000?
CryptoQuant also highlighted continued institutional interest in Ethereum despite market volatility. These institutional players and retail investors have continued to call on Ethereum to indicate their trust. If the momentum continues, it could lead Prices reach $5,000based on expectations.
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Overall, metrics indicate that an uptrend may be occurring for ETH. It is worth noting that the anticipation lies in the optimism of market participants and their continued exposure to the asset. For example, Black Rock IthaAs of December 18, it recorded an inflow of $81.9 million.
As of this writing, ETH is trading at $3,336.30, registering a 1.35% decline over the past 24 hours. According to To the data. However, the market size is in line with CryptoQuant's analysis as it rose significantly by 11.45% to reach $29.81 billion.
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