Ethereum and Altcoins Show Signs of Short-Term Uptrend

The cryptocurrency market has been dominated by negative funding for an extended period, indicating a bearish sentiment among investors. However, despite prolonged short side intensity, prices have maintained their value and recovered gradually.

Funding EMAs have remained in negative territory but are trending towards zero, suggesting a decrease in the pressure from shorts. The market structure is now more balanced and neutral, with a slight dip in funding rates to around -0.0009. Long pressure has not formed yet, and shorts are not fully exhausted.

Ethereum (ETH) is currently undergoing a structural transition phase, where it can either move into a sustained uptrend or face selling pressures near the local top. The market's inability to collapse prices despite negative funding indicates that sellers may be waiting for a better opportunity to initiate positions.

The altcoin market is also being affected by this shift in sentiment. While there is no strong demand on the spot side, selective altcoins may attract buyers and show upward momentum during this period. However, the necessary momentum for a strong altseason is still lacking.