How key Ethereum metrics are flashing green despite price correction

The Ethereum market is still seeing several bullish metrics despite past difficulties and the recent ongoing decline.

EthereumThe price struggle in recent years has been well documented, with poor performance Bitcoin and Solana in 2023 due to it failing to reach all-time highs in 2024. Despite these difficulties and the recent price correction, the CryptoQuant report indicates that key metrics continue to paint a bullish outlook for the altcoin.

Is an Ethereum bull storm brewing?

Over the past week, the price of Ethereum has fallen approximately 19% from highs around the $4,100 price point to trade around $3,300 at the time of writing amid a market survey led by The Federal Reserve’s hawkish axis.

However, the outlook for Ethereum remains overwhelmingly positive, at least according to CryptoQuant report Monday, December 23. According to the report, several key Ethereum metrics continue to paint a bullish picture for the asset.

Estimated leverage ratio

One such measure is the estimated leverage ratio. The ratio measures the balance of open interest in futures contracts on an exchange to their equity to determine the amount of leverage in the market. It can often help investors gauge risk appetite.

According to a Cryptoquant report, Ethereum’s estimated leverage ratio remains near record levels at around 0.53, demonstrating strong risk appetite among investors.

The high risk appetite among investors suggests that they are not looking to reduce exposure to assets.

Financing rates

Beyond estimated leverage ratio, CryptoQuant’s latest report highlighted funding rates as another key Ethereum metric that is flashing green.

Financing rates refer to payments made between perpetual contract holders designed to stimulate price stability by keeping the futures market price close to the spot price.

Notably, funding rates are positive when the futures price is higher than the spot price, as long traders pay short traders. On the other hand, funding rates are negative when the contract price is below the spot price, with short positions pushing long positions.

CryptoQuant highlighted that Ethereum’s funding rate is moderately positive at 0.01, highlighting the potential for continued price growth with minimal liquidation risk.

Positive funding rates indicate bullish market sentiment because they indicate that long-term traders are willing to pay a premium to hold their contracts.

Korea Premium Index

Another metric that indicates Ethereum’s bullish momentum, according to CryptoQuant, is the Korea Premium Index.

The Korea Premium Index measures the difference between prices on Korean stock exchanges and other regions. It is often used as a metric to measure retail interest, as Korea is known for its large number of retailers.

Retail interest is believed to be high when this index is at a premium and low when it is at a discount. CryptoQuant’s report highlights that Korea’s premium Ethereum index is enjoying a significant premium, indicating rising retail interest.

However, it does not appear that only retail investors are showing interest in Ethereum at current prices.

Ethereum fund holdings are on the rise

The final metric cited by CryptoQuant in its latest report is the balance of Ethereum in global funds, including Ethereum spot ETFs.

The cryptocurrency analysis platform shared a chart indicating that this metric has been on the rise since November 2024 and has not declined despite the recent market decline. This indicates confidence in Ethereum’s potential among institutional investors.