Ethereum has faced a strong correction after peaking near $1,350 last week. The cryptocurrency currently trades for $1,050, though fell as low as $950 on Monday due to an influx of selling pressure.
During the drop, the funding rates of the ETH futures markets were extremely overleveraged. In some cases, there were long positions holders paying in excess of 0.15% every eight hours to keep their positions open. This extremely high funding rate in the Ethereum futures market indicated that buyers were overleveraged.
The cryptocurrency has since bounced, returning to $1,050, though moved as high as $1,130 on Tuesday.
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Here’s what analysts think comes next for Ethereum after this volatility.
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Ethereum Must Hold $700
Crypto-asset analyst Michael Van De Poppe says that Ethereum has touched a level of key interest during the recent correction, holding $900. While the cryptocurrency remains above that support level, Van De Poppe says that all eyes should be on $700, which is where Ethereum could catch a bid next after the crushing correction:
“#Ethereum has hit the first level of interest here around $900. It’s looking for a new higher low after this higher high, which is natural. Also eyes on the $700 region. If that correction is over, $ETH is ready for…