According to data provided by the cryptocurrency exchange BitMEX, the crypto market may consolidate in the near future. This is what the cryptoanalyst Rptr45 that shows that the daily funding rate on BitMEX is currently 0.34% for Ethereum (ETH) traders. This represents the 93rd percentile of all Ethereum funding rates ever.
Ethereum Could Consolidate Its Price In the Near Future
The expert explained that leverage has gotten to the point where the market needs to consolidate. He went on saying that in previous instances where BitMEX funding went that high, Ethereum performed negatively over the next 10 to 20 days.
At the time of writing this article, Ethereum is being traded around $250 and it has a market capitalization of $23.53 billion, according to data provided by CoinMarketCap.
0/ Leverage has gotten to the point where it looks like the market needs to consolidate. $ETH daily funding is at ~0.34% the top 7% of observed periods. pic.twitter.com/SCHfRN7vye
— Rptr45 (@Rptr45) May 20, 2019
Analysts believe that Bitcoin (BTC) and other digital assets could eventually start moving up once again in the future. The sentiment changed this year from negative to positive but after the New York Blockchain Week, it seems that investors are more cautious after a large price increase in Bitcoin during the last month.
If Bitcoin moves up once again, so other altcoins would clearly follow the same trend. That means that both Ethereum and XRP are expected to keep expanding in the market.
Magic Poop Cannon, an anonymous crypto trader, and analyst said that Bitcoin might not yet be in a bull market. This trader predicted Bitcoin to drop from $6,000 to $3,000 before this happened at the end of 2018. He explained that Bitcoin’s current rally doesn’t make sense and that the market is behaving irrationally.
