Source of the original article: Cryptographic Ah Yao

Ethereum's funding rate, network activity, and L2 adoption rate all indicate that the altcoin's price has more room to rise.

• The Ethereum funding rate will reach the 0.015 level

• Altcoin's on-chain data appears to indicate growing market confidence

Ethereum (ETH) has been showing signs of potential price growth, and the funding rate suggests this may be the calm before the price soars. Historically, whenever interest rates on capital were lower, the price of ETH rose sharply on the charts.

At press time, ETH's funding rate was low, between 0.002 and 0.005. Historically, this level has preceded price increases.

If the exchange rate exceeds 0.015, just like the previous bull market, the price of Ethereum is likely to rise. The last time ETH's funding rate reached that point, the price surged from $1,500 to $4,000.

Based on historical trends, a similar situation is likely to occur as Ethereum enters its final quarter of the year — a period where the market is traditionally strong.

Support from the futures market is expected to play a key role in this potential price increase, and capital interest rates are a key indicator to focus on price increases.

ETH Technical analysisIt started looking good

Ethereum's technical analysis also points to a bullish outlook. Recently, ETH has been consolidating in an expanding wedge pattern, and its RSI Shows a strong bullish divergence.

This means that ETH may soon test higher price levels, which could reach $3,500 to $3,600 in the near term. If Ethereum can break through this range, it could target $5,000 over the next few months.

The general market trend of rebounding from the lower trend line and moving upward suggests that ETH may be expected to reap higher gains. Especially if market conditions reflect past performance.

Daily gas usage reaches ATH

Ethereum's network activity has also remained strong. On September 1, despite lower gas prices in recent weeks, daily gas usage hit a record high of 109 billion.

This milestone shows that Ethereum's network is still highly active, debunking claims that ETH's influence is waning. In fact, high gas usage indicates that demand for Ethereum remains constant.

Stablecoin trading volume on the ETH chain reached a record high

In addition to gas usage, Ethereum's on-chain stablecoin trading volume also hit a record high. That amount reached $1.46 trillion, more than double the $650 billion earlier this year.

DAI leads the stablecoin market with a trading volume of $960 billion, while USDT and USDC also continue to dominate.

The growth in stablecoin trading volume is being driven by increased demand for DeFi and the growing participation of traditional finance. One example is PayPal's PYUSD, which has now risen to $2.4 billion.

L2 adoption reached a record high

Finally, layer 2 (L2) adoption also hit a new high, contributing to Ethereum's long-term growth.

L2 solutions such as Arbitrum, Base, Optimism, and Mantle are driving Ethereum's scalability and adoption. This further supports the reason for the long-term rise in the price of ETH.