Ethereum’s Positive Indicators: Are We on the Verge of a Major Price Rally?
According to Santiment, a reputable analytics firm, Ethereum (ETH) shows positive signs after the Shapella upgrade.
The firm suggests that the large number of traders betting against ETH following the upgrade could trigger a price surge.
Santiment also highlights the perpetual contract funding rates on Deribit, which have shown significant swings between shorts and longs in the past three months.
The price began to rise once funding rates became neutral, but there is a prevalent shorting trend. Santiment interprets this as a bullish signal, as more liquidations could fuel further price rises.
A short squeeze could trigger further rallies as traders rush to buy back the assets to cover their losses.
Santiment warns that the number of transactions involving profits is the highest it has been since January 20th, which could temporarily push prices down.
However, ETH’s MVRV is currently at 9.95%, indicating a higher risk of a drop, but not yet at an alarming level.
READ MORE: Bitcoin and Ethereum to Benefit from US Economic Slowdown, According to M. Novogratz
However, the firm also notes a bearish signal in the high number of transactions involving profits, which had not reached such high ratios since January 20th, when there was a market correction.
Another bearish signal is indicated by the significant decline in the number of ETH’s shark and whale holders who are selling.
Santiment also considers ETH’s 30-day market value to realized value (MVRV) to detect overbought or oversold conditions. While the MVRV is high, it has not yet reached a level of concern.
At the time of writing ETH is trading at $2,100 after a 13% surge in the past week.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
