Ethereum currently rests at a notable support region near $3.2K, with market participants closely observing the potential for a bullish rebound.

The Funding Rates metric offers valuable insights into the sentiment within the perpetual futures markets, helping to gauge the likelihood of a recovery.

Technical Analysis

By Shayan

The Daily Chart

Ethereum has seen consistent declines following its rejection at the $4K resistance level, indicating the dominance of sellers. Most recently, another sharp decline pushed the price toward a substantial support zone, defined by the 100-day moving average of $3.1K.

This dynamic support is critical as demand concentration near this region is expected to curb downward momentum, with a bullish rebound being plausible if buying interest emerges.

Currently, ETH is trapped between the 100-day MA ($3.1K) and the $3.5K resistance level, forming a tight consolidation range. A decisive move in either direction will likely determine the mid-term trend.

The 4-Hour Chart

On the 4-hour timeframe, Ethereum broke down from an ascending wedge pattern, a bearish structure that typically signals further declines. This breakdown triggered a swift sell-off, pushing the price toward a support zone defined by the 0.5-0.618 Fibonacci retracement levels.

This support zone has the potential to stabilize the price and possibly initiate a short-term bullish rebound. However, persistent bearish pressure could result in a break below this line, intensifying the downtrend.

If Ethereum breaches this critical support zone, it may trigger panic selling, further strengthening sellers’ dominance. Conversely, a sustained rebound could pave the way for a recovery toward the $3.5K resistance level.

Onchain Analysis

By Shayan

Examining the chart, the recent market correction has coincided with a significant decline in funding rates. This shift suggests growing bearish sentiment among speculators, with many traders betting on further decreases in ETH’s price.

However, upon reaching the substantial support zone at $3K, the Funding Rates metric has started to show signs of recovery. A notable bullish spike in the metric suggests an influx of buying interest as market participants begin to open long positions in anticipation of a price rebound.

If this recovery in funding rates continues, it could indicate sustained demand and the potential for a bullish rebound from the $3K support. On the other hand, if the current recovery loses momentum or reverses, it would signal a return to bearish sentiment, paving the way for a deeper correction.

Decentralized Physical Infrastructure Networks (DePIN) projects have gained tremendous traction in the past year. In 2024, while crypto markets doubled, DePIN outpaced this growth, which can be attributed to artificial intelligence (AI) achieving global prominence.

New data reveals that this nascent sector currently holds less than 0.1% of their $1 trillion+ addressable market.

DePIN Is The “Frontier”

As decentralized networks outcompete centralized corporations with faster and more reliable offerings, DePIN is projected to grow 100-1000x over the next decade, according to Messari’s latest report.

Interestingly, the “chain wars” have intensified, with Solana and Base gaining market share. Interoperability solutions like Wormhole and LayerZero have driven DePINs to adopt multi-chain strategies, broadening their user base but fragmenting liquidity. Messari stated that Solana’s “latency-focused” culture appears to have amassed innovators at the infra layer, while Coinbase’s brand and retail distribution have attracted consumer-focused founders to Base.

Early-stage VCs were found to be aggressively invested in DePIN, buoyed by strong listing conditions. In private markets, funding at the pre-seed and seed levels surpassed Series A rounds. Meanwhile, in liquid markets, projects with lower listing FDVs demonstrated the highest returns.

Of the leading 22 DePIN tokens, only four depreciated after their TGE, with Virtuals Protocol leading the pack with over 30,000% growth. NEURAL and NodeAI also showed remarkable performance as each grew more than 2,000%.

Late-stage capital was directed toward a select few standout projects and was supported by top-tier VCs. These projects launched tokens at 50-100x book value, frequently achieving multi-billion-dollar FDVs. Community efforts also proved crucial as $230 million was raised in 2024 via node sales, crowdfunding, and protocol-owned liquidity pools.

Additionally, DePIN is becoming a tool for local governments to solve infrastructure problems. In fact, the report stated that leaders are using it to address key concerns, such as promoting AI sovereignty in Tanzania and bridging the digital divide in Mexico, to resonate with voters and secure electoral victories.

DePIN Poised for Growth in 2025?

Crypto hedge fund and venture capital firm Pantera Capital recently predicted that 2025 would be a crucial year for DePIN, with regulatory clarity potentially eliminating key barriers for investors and innovators.

Grayscale Research also echoed a similar sentiment and stated that DePIN has emerged as a key focus within its Top 20 crypto investment list.

Despite some difficulties, the cryptocurrency market ended 2024 on a strong note, reaching an all-time high (ATH) market cap of $3.91 trillion in December.

In a recent insight report published by Binance Research, the research arm of the cryptocurrency exchange, the market’s growth was largely influenced by Bitcoin’s stellar performance and regulatory optimism.

Bitcoin Becomes 7th Largest Global Asset

Following the bitcoin halving event in April 2024, the leading cryptocurrency has been on a roll, hitting ATH after ATH. With its latest peak of $108K, bitcoin’s market cap saw a year-to-date (YTD) growth of approximately 123.4%.

Its stellar performance in 2024 resulted in it being ranked the seventh largest global asset by market cap, surpassing Saudi Aramco, Silver, and Meta. Despite being a relatively newer asset class compared to the more established ones on the list, BTC stood out among the best performers in 2024, only behind Nvidia.

Per the report, bitcoin’s impressive growth was fueled by several factors, including positive global monetary policy shifts and the approval of spot BTC ETFs in January 2024. These financial vehicles reinforced bitcoin’s legitimacy as an asset class, unlocking fresh capital inflows from institutional investors.

In just the first year, US-based spot Bitcoin ETFs accumulated over $50 billion in assets under management (AUM).

Additionally, the recently concluded United States presidential election further fueled the rally. Donald Trump’s victory spurred optimism among market participants as expectations of potential regulatory changes under the pro-crypto Trump administration heightened.

Interest in AI Agents Explode

The report also highlighted the growing interest in the emerging AI sector of the crypto industry. The AI agents are becoming a hot topic among market participants, attracting significant investments.

Per the report, the sector’s boom was kickstarted by the AI agent Truth Terminal and the GOAT token. Following the token’s success, the sector has continued to evolve as new projects launch.

With top agents’ tokens reaching high market valuations, Binance believes this sector could drive massive industry growth in 2025. The top AI agents’ token, VIRTUAL, currently has a market cap of $4.2 billion.