Ethereum Funding Rate Hits 2024 Low: Impact on ETH?

Understanding Ethereum's Funding Rate Decline

Ethereum (ETH) has experienced a significant decrease in its Funding Rate, reaching the lowest level of 2024. This metric is crucial in the Futures markets, where it indicates the cost associated with holding long (buy) or short (sell) positions. A negative Funding Rate, which we've observed, suggests that short sellers are paying long holders to maintain their open positions. This typically signals a bearish sentiment, meaning traders expect prices to fall.