Stabilization of Ethereum funding rates suggests that a recovery may be in the works

After the merger, Ethereum funding rates took a massive hit. This event was the single most anticipated update in the network’s history, and negatively affected both pricing and funding rates. However, things are starting to calm down as the market settles into Ethereum’s new normal stock network validation. One of these is the return of cash flows to pre-merger levels.

Stabilization of funding rates

The days leading up to Ethereum integration have been very volatile for the crypto market. Ethereum itself bore the brunt of this, and although the days before the update were full of positive activity, it quickly changed.

Ethereum funding rates nosedived on the back of the merger. It fell to negative 0.02% to negative 0.35% from below neutral levels when the revision was final. At the same time, it also follows the sales price that shook the market. In the days leading up to the merger, FTX longs were offset by a total of 9.92% of shorts and hedged their positions on the exchange.

Ethereum funding rates

ETH funding rates recover | Source: Arcane Research

However, shortly after the merger was completed, the market began to recover. This recovery was just as sharp as the decline, returning to negative 0.02% from negative 0.35% on September 16. This sharp growth has been reflected in the value of the digital asset, which has maintained much of its value during this period. This shows that despite the selloff, there are still a large number of Ethereum owners who expect long-term exposure to the digital asset.

Ethereum may recover.

With interest rates recovering to pre-merger levels, there is still bullish sentiment among investors. This ongoing bullishness continues to drive the digital asset’s value through a bear market.

While most of the sell-off was caused by the hype around the merger, it’s common for Ethereum to stabilize after most of the hype is over. It leaves savings in the place where you can buy the digital asset without saving much from the previous price.

Ethereum price chart from

ETH price drops below $1,300 | Source: ETHUSD on

Even now, with the FOMC-induced volatility in the market, support for ETH continues to increase. The exchange rate over the past 24 hours reflects this growing trend. It stated that it was about 40% higher than the flows into ETH that day. Data from Glassnode.

If ETH can maintain the support level at $1,250, this point will serve as a crossover point for the digital asset. If ETH successfully breaks the $1,300 resistance, it could retest the $1,500 level next week.

Featured image from, charts from Arcane Research and

follow Best Owie on Twitter For market insights, updates and the occasional funny tweet…

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *