Isabella García
Indicators in Ethereum’s derivatives market are showing renewed signs of optimism, with the 30-day moving average of funding rates turning positive. This suggests that futures traders are becoming increasingly bullish, according to an analyst.
Julio Moreno, CryptoQuant’s Head of Research, pointed out that this shift follows a long period of decline, indicating a possible shift in sentiment. “In general, rising and positive funding rates reflect traders’ willingness to take on long positions in the perpetual futures market, which is historically linked to expectations of higher prices,” Moreno shared with PRIME X.
Latest: Ethena Announces UStb Stablecoin: Backed by BlackRock’s BUIDL
However, he cautioned that this uptick alone doesn’t guarantee a sustained price surge. “Still, the increase in the 30-day moving average of funding rates is a promising sign,” he added.
Data from Coinglass supports this, showing that Ethereum’s open interest-weighted funding rate has been trending upward since the U.S. Federal Reserve cut interest rates on September 18, now sitting at 0.0089%. Analysts from QCP Capital have also noted improvements in funding rates across major exchanges, attributing the rise in optimism to the recent rate cuts. “Funding rates are improving across key exchanges, and basis yields are becoming more attractive, especially after the recent interest rate reduction,” the analysts stated, highlighting growing confidence in the crypto derivatives market.
The perpetual futures market is a critical indicator of broader market sentiment and potential price movements, providing insights into traders’ expectations for the weeks ahead.
This shift in Ethereum’s futures funding rates aligns with a broader market recovery and price growth. Since the Federal Reserve’s decision to lower the Federal Funds rate by 50 basis points on Wednesday, September 18, ether has surged by over 17%, outperforming bitcoin, which gained around 10% in the same timeframe.
