Latest market data shows that the funding rate of Ethereum (ETH) exchanges is presenting a clear rising trend, and long positions investors seem to be somewhat crowded. In this situation, whether ETH can continue to pump remains uncertain. However, what we can be sure of is that ETH is currently not at a bottom position.

Last night, the funding rate of ETH once plummeted to a negative value, with the price around 3700 dollars at that time. This negative funding rate usually signals a potential rise. Sure enough, from last night until now, the price of ETH has indeed shown a strong pump, and the funding rate has also turned from negative to positive, with the previously crowded short positions becoming the "fuel" driving the price increase.

For ETH and Bitcoin (BTC), it is relatively easy to determine the short-term entry timing. Typically, when the funding rate turns negative, the price of the coins is often at a relatively low point, which may lead to a certain degree of rebound, providing potential profit opportunities for investors. However, it is worth noting that the funding rate has not yet fully turned positive, so it is not appropriate to blindly try to buy at the bottom at this time.

It is important to understand that a positive funding rate does not necessarily mean that the market has reached its peak. In most cases, the funding rates of cryptocurrencies are positive. Therefore, relying solely on the funding rate to determine short-selling opportunities is not reliable. In fact, the funding rate indicator is more suitable for assessing market bottoms, as it is particularly sensitive to changes at the bottom.

From the recent trend, Bitcoin had escape and shorting opportunities around $120,000, and then showed shorting opportunities three times at $116,000. However, the third time coincided with some unexpected positive news, bringing new vitality to the cryptocurrency market.

Although it is currently difficult to be bearish on the market like before, I personally think that the current coin price is still relatively high. Therefore, I will adopt a more patient strategy and wait for clearer entry signals to appear. For example, a negative funding rate appearing again, or technical signals such as the RSI indicator showing oversold conditions, or the MACD indicator showing a golden cross.

Regardless, it is crucial to remain vigilant and conduct rational analysis in the cryptocurrency market. Investors should consider multiple factors as a whole, rather than relying solely on a single indicator to make decisions.