Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Ethereum (ETH) has experienced price fluctuations within the last seven days as it struggles to climb back to the $4,000 level. Despite Ethereum’s obvious struggles, a rebound might be on the horizon for the leading altcoin.

Positive metrics point to market optimism

CryptoQuant, a leading on-chain data provider, highlighted some crucial metrics in a post on X that suggest a cautiously optimistic outlook for Ethereum. Notably, CryptoQuant pointed out four indices hinting at a possible positive future for ETH.

According to charts, Ethereum’s Estimated Leverage Ratio is at its peak. This signals that traders and investors are willing to take risks on Ethereum’s derivatives market. The implication is that investors’ confidence has not waned in the asset’s potential to earn profits for them.

Meanwhile, the funding rates for Ethereum remain moderately positive as traders continue to bet on price increases. These traders have taken long positions despite rates not being excessively high. However, this development suggests a reduced risk of liquidity-driven volatility and possible price growth.

Furthermore, the Korea Premium Index is positive, with a significant premium on South Korean exchanges. This spike in demand for ETH might influence global market sentiment and trigger general optimism that could impact the price.

Could ETH hit $5,000?

CryptoQuant also highlighted continued institutional interest in Ethereum despite market fluctuations. These institutional players and retail investors have continued to demand Ethereum to signal their confidence. If the momentum is sustained, it could drive prices up as high as $5,000, based on predictions.

Overall, the metrics suggest a bullish trend might happen for ETH. Notably, the anticipation lies in market participants' optimism and continued exposure to the asset. For instance, BlackRock’s ETHA, as recently as Dec. 18, registered an inflow of $81.9 million.

As of this writing, ETH is exchanging at $3,336.30, marking a decline of 1.35% in the last 24 hours, according to data. However, market volume aligns with CryptoQuant’s analysis as it has increased significantly by 11.45% to $29.81 billion.