A quant has explained how the movement of whales differed between before and after the Ethereum merge went live. Ethereum Funding Rates Reached An All-Time Low Just Before The Merge As pointed out by an analyst in a CryptoQuant post, a lot of ETH investors bet on the price going down around the merge’s completion. The relevant indicator here is the “funding rate,” which measures the periodic fee that perpetual futures contract traders exchange between each other. When the value of this metric is positive, it means long investors are paying a premium to the short holders right now to hold onto their positions. Such a trend shows a bullish sentiment is more dominant in the market currently. Related Reading: Bitcoin Whale Selling Pressure Continues As BTC Dips Under $20k On the other hand, negative values of the indicator suggest shorts are overwhelming the longs at the moment as the majority are feeling bearish. Now, here is a chart that shows the trend in the Ethereum funding rates over the last few days: Looks like the metric had a deep red value not too long ago | Source: CryptoQuant As you can see in the above graph, the Ethereum funding rates had been going down only a couple of days back, and reached a new negative peak right as the merge arrived. The quant explains that this was because investors thought the PoS transition hype had already impacted the market, and so they bet on short positions, bel...
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