Ethereum (ETH), one of the leading cryptocurrencies, has been experiencing a period of sideways movement, with its value lingering below the crucial $3,500 threshold for over a month. However, recent on-chain data hints at a potential shift in momentum. Let’s delve into the key factors that might signal an imminent breakout.

Holding Time on the Rise

Recent analytics from IntoTheBlock have highlighted a significant increase in the holding time of Ethereum coins. Over the past week, the average holding duration of transacted ETH has surged by 55%. This metric reflects the average time investors hold onto their tokens before selling or transferring them.

A longer holding period is indicative of strong investor confidence. When investors choose to hold rather than sell, it reduces the selling pressure on the market, which can contribute to a rise in value. Additionally, Ethereum’s funding rate remains positive, currently standing at 0.019%. This steady demand for long positions among futures traders signifies bullish sentiment despite the price stagnation.

The funding rate, a fee exchanged between long and short traders on perpetual futures contracts, ensures the contract’s price aligns with the underlying asset’s spot price. A consistently positive funding rate suggests that more traders are betting on Ethereum’s price increase.

Predicting ETH’s Next Move: $3,516 or Bust?

The market dynamics suggest that waning selloffs might propel Ethereum past the $3,516 resistance level. Should ETH manage to break through this key barrier, its value could surge towards $3,684. However, if the bullish momentum falters, the cryptocurrency might retreat within its current narrow range or even dip towards the $3,210 support level.