On-chain data shows the Ethereum funding rates have now declined to the lowest value in 14 months, something that could pave way for a short squeeze in the market. Ethereum Funding Rates Reach Highly Negative Value As pointed out by an analyst in a CryptoQuant post, the ETH funding rates are currently at their least value since July 2021. The “funding rate” is an indicator that measures the periodic fee that traders in the Ethereum futures market are exchanging between each other right now. When the value of the metric is negative, it means short traders are paying a premium to the long traders in order to hold onto their positions. This trend generally hints that a bearish sentiment is more dominant in the market currently. On the other hand, positive values of the indicator imply longs are overwhelming the shorts at the moment. Naturally, such a trend suggests the majority sentiment is bullish. Related Reading: Bitcoin Taker Buy/Sell Volume Spikes Up As Price Experiences Volatility Now, here is a chart that shows the trend in the Ethereum funding rates over the past fifteen months or so: Looks like the value of the metric has been a deep red in recent days | Source: CryptoQuant As you can see in the above graph, the Ethereum funding rates have declined recently, and have now hit highly negative values. The indicator’s current values are the lowest they have been since the July of last year, around four...
$30 Million Worth XRP Traded in 30 Minutes
