Funding Rate Data Suggests Optimism for Ethereum Futures

CryptoQuant, a leading service provider of community-based crypto market analysis, has observed a series of market reactions in the Ethereum derivatives market. Having studied the 30-day Moving Average of Ethereum’s funding rate, CryptoQuant averred that the signals are positive. 

Taking a look at the derivative markets of Ethereum, market indicators are exhibiting signs of investor optimism again. This is believed to influence futures traders to adopt bullish sentiment towards the derivative.

Julio Moreno, the Head of the CryptoQuant Research Team, mentioned that before the bullish rise, there was a lengthy period of declining market conditions. However, the rising bullish signals, which entail rising positive funding rates, suggest that traders are now taking bullish positions.

Julio added that the rising prevalence of long positions being taken by traders in the futures market aligns with historical antecedents where similar scenarios produced market conditions with an increase in prices. Despite the positive report about the ETH futures market condition, it is safe to understand that improved moving average data alone cannot preserve the market from decline.   

CryptoQuant is not the only institution to mention traders’ optimism towards Ethereum futures trading, Coinglass published market analytics that suggested that the Federal Reserve’s rate cut on September 18 had impact on Ethereum’s funding rate. According to the publication, the open interest-weighted funding rate of Ethereum experienced a rise in trader involvement since September 18th, as it now pegs at 0.0089%. 

However, QCP analysts opine that the positive sentiment is not peculiar to Ethereum futures alone but a market condition that has spread across other exchanges. According to QCP Capitalists, the rate cut on September 18th has produced a better outlook of funding rates on a number of large exchanges and well-improved basis yield opportunities. These are signals for increased positivity across various crypto derivatives. 

The general price rebound and uptick in the market since the September 18th rate cut have had more impact on ETH’s futures funding rate. This is evident in ETH’s 17% appreciation, a clear difference from BTC’s 10%.