- Ethereum is trading above $4,000 as positive funding rates and low exchange reserves suggest the correction may be over.
- Analysts predict ETH could rise toward $6,800 by 2025 if bullish conditions persist.
Ethereum (ETH) appears ready to resume its upward climb after weathering a sharp correction last week. The second-largest cryptocurrency by market capitalization is trading slightly above $4,000, recovering from its brief drop near $3,400. Several on-chain and derivatives indicators now suggest that the worst of the correction may be behind it.
Ethereum Correction Nears Its End
According to a CryptoQuant report, funding rates for Ethereum futures on Binance have stayed positive but within a narrow range — between 0.01% and 0.03%. This indicates that traders are maintaining long positions without showing signs of greed or overconfidence, which are usually seen in overheated markets.
Historically, during the 2021–22 bull cycle, funding rates climbed as high as 0.2% before marking local tops. The current moderate funding levels suggest a healthier structure, pointing to a steady uptrend rather than a speculative spike.
Analysts note that this balanced behavior among traders could mean Ethereum’s correction phase has ended. Minor profit-taking between $3,600 and $3,800 might occur, but as long as funding rates remain below 0.05%, ETH appears well-positioned for growth.
Signs of Renewed Bullish Strength
Ethereum’s on-chain metrics are also flashing positive signals. The Spent Output Profit Ratio (SOPR) — a key indicator for identifying profitable selling activity — suggests ETH may soon push toward the $5,000 level. Additionally, exchange data reveals a significant drop in ETH reserves, now at multi-year lows. This reduction in supply on trading platforms hints at strong accumulation and the potential for a supply squeeze.
CryptoQuant analysts believe the combination of low funding rates, moderate leverage, and decreasing exchange supply could propel Ethereum toward a long-term target between $4,500 and $5,000. Under favorable conditions, ETH might even reach as high as $6,800 by the end of 2025.
Still, traders should remain cautious. A sudden spike in funding rates could signal excessive long positions and trigger another short-term pullback.
At the time of writing, Ethereum trades at $4,053, up 0.2% over the past 24 hours, showing early signs of a steady recovery that could set the stage for its next rally.
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