## Market Funding Rates Experience a Shift Post-Bybit Hack
Market funding rates have seen a decline following the notorious Bybit hack, which resulted in a staggering loss of over $1.4 billion. This downturn comes amid a general sense of low sentiment, although there are signs of growing interest from bullish investors and large holders. On a brighter note, Ethereum (ETH) reserves on the exchange have shown signs of recovery, indicating potential growth ahead. Despite some lingering fears this weekend, crypto users remain optimistic, with bulls anticipating the onset of an altseason.
## ETH Traders Face Mixed Price Projections
In the past 48 hours, funding rates have reflected significant trends in the altcoin market, leaving many traders at a pivotal juncture. On one hand, a notable decline has pushed the asset below its previous support level, heading towards the $2,500 mark. This downward trend has erased minor gains as altcoins aim for a potential recovery. As of now, the price of ETH is at $2,676, marking a 4% decrease in the last 24 hours. Weekly gains have also taken a hit due to increased selling pressure.
“Funding rates have experienced a sharp decline during the latest market turbulence, even turning negative. This drop suggests heightened selling pressure and fear-driven activity in response to the hack. If this trend continues, especially with ongoing resistance at the $3K level, further declines could follow, with sellers targeting $2.5K as the next major support,” noted CryptoQuant. The drop in funding rates often leads to a sideways correction before the next cycle peak, typically spurred by fresh capital. Analysts suggest that a trend reversal could push Ethereum’s price above the $3K threshold, setting the stage for more substantial gains. Funding rates are crucial for assessing market direction due to the urgency of trade execution.
## Bulls Chart Upward Course
On the flip side, Ethereum holders are in a strong position for a price surge, citing both institutional and on-chain factors. Notably, the asset reserve on Bybit has seen an impressive increase of over 400% following the hack. Just hours after the incident, ETH reserves had plummeted to 39,692, but recent data indicates a rebound to over 200,000 ETH as trading activity picks up. While movement to exchanges is typically viewed as a bearish signal, most of the previous outflows were sales rather than transfers to other custodians. With trust in the market growing, whales have also made significant purchases, aiming to capitalize on the upward swing.
Ethereum is poised to take center stage in the altcoin season, which market experts believe has already begun. This optimism has fueled price projections that could see ETH surpass the $4K mark before reaching the cycle’s peak.
