Ethereum’s funding rate has dropped, risking a fall below the critical 3,000 USD support level. This notable decline indicates reduced demand, weakening Ethereum’s potential for a rally. Analysts believe that defending the 3,000 USD support is crucial to keeping a bullish trend alive. Without it, ETH could face further declines.

Currently, ETH is trading at 3,232 USD, marking a 10.08% weekly decline. With increasing short positions, there’s a sentiment of bearishness among traders. This trend is evidenced by lower long-term investment returns and declining market confidence, suggesting a potential dip if the 3,000 USD support isn’t maintained.

The overall outlook for Ethereum depends significantly on its ability to reclaim a higher funding rate and maintain the 3,000 USD support level. If ETH breaches this level, it risks further decline, possibly dropping to 2,800 USD. The shift in investor sentiment towards bearishness is also a MAJOR factor influencing ETH’s future price movements.