Dear friends, please like and follow! With the decrease in interest rates and the approaching of the $3000 mark, Ethereum is facing a severe test.

Despite the recent overall bullish trend in the cryptocurrency market, Ethereum (ETH) is still under pressure and struggling to achieve any significant upward movement.
CryptoQuant QuickTake contributor ShayanBTC's recent analysis reveals the key factors affecting the performance of the Ethereum network.
In an article titled "Etherum at a Crossroads: Funding Intrerest Rate and $3000 Support Key to Sustaining Bullish Momentum," Shayan emphasized the challenges the asset faces in maintaining an upward trajectory.
The importance of financing Intrerest Rate and a support level of $3000
Shayan said that the bullish trend of Ethereum is facing serious challenges due to the fluctuation of the key indicator of the derivative market demand - Interest Rate of funds.
Although these exchange rates initially rose during the recent cryptocurrency market rally, indicating growing confidence, the subsequent decline after Ethereum hit the resistance level of $4,000 suggests a decrease in traders' interest and commitment.
It is worth noting that the sharp increase in Intrerest Rate during the uptrend indicates that traders are cautiously optimistic. However, the sharp decline in these Intrerest Rates afterwards highlights the weakening demand for ETH in the derivatives market.
This shift has raised concerns about the sustainability of the bullish trend, especially considering that Ethereum has been unable to break through the resistance level of $4,000.
The support level of $3,000 has become a key threshold for Ethereum. Shayan emphasized that maintaining this level is crucial for stabilizing the market and possibly reigniting bullish momentum.
If it fails to maintain above $3,000, it may trigger increased selling pressure, leading to further market correction. Analysts wrote:
Overall, the future of Ethereum depends on reclaiming a higher Intrerest Rate and defending $3000. These factors will determine whether the market will recover its upward trend or face further adjustments.
Ether market performance
Meanwhile, Ethereum continues to show a downward trend, especially as the market recently turned bearish. In the past week, the market cap of Ethereum has dropped by 6.2%, with prices falling below $3,500.
However, in the past day, the price of Ether has slightly increased, with the asset rising by 0.9%. This small increase has pushed the price of Ether to hover above $3,200 at the time of writing, a 33.9% drop from the historical high of $4,878 set in November 2021.
Interestingly, despite a price drop in ETH over the past week, the daily trading volume of the asset has shown the opposite trend during the same period. In particular, the daily trading volume of ETH has increased from over 20 billion US dollars last Friday to over 26 billion US dollars today.
Given the current trend of Ether (ETH), it is worth noting that the increase in trading volume may be the result of sustained buying pressure and a surge in selling pressure in the Ethereum market.#参与年终社区盛典助力，赢周边海量好礼 #GateLive Space：连麦畅聊币圈热点！ #GT新年屡破新高，接下来到多少？