Ethereum Funding Rate Analysis: Calm Before the Storm?
CryptoNewsTerminal Staff12 Sep, 2024
Ethereum Funding Rate Analysis: Calm Before the Storm?
CryptoQuant analyst Burak Kesmeci recently observed that Ethereum (ETH) funding rates tend to surge when they exceed 0.015, often leading to increased market volatility. During the bull run in September 2021, funding rates stayed within a narrow range of 0.002 to 0.005. However, they broke above 0.015 with support from the futures market, coinciding with a significant ETH price increase from $1,500 to $4,000. Since the beginning of August 2023, funding rates have been fluctuating around similar levels. If they start moving above 0.015 again, it could be a sign of a "calm before the storm," potentially indicating a period of elevated market volatility. Traders should monitor funding rates closely to gauge market sentiment and potential price direction for Ethereum.
