CryptoQuant has pointed out the need for an increase in funding rates in the Ethereum futures market for a parabolic rise in the cryptocurrency’s price.

The current rate of ~0.0056% is comparable to what was observed in September 2023 before the indicator rose sequentially to levels above 0.015%, experts noted.

Coinbase has cited altcoins as the culprit behind Ethereum's stagnation — due to significant declines in their prices, investors find it “difficult to exit” positions. This has “trapped” capital that would otherwise flow through a broader ecosystem like Ethereum.