💥💥💥 #EthereumFutures See Lowest Funding Rates of 2024, Indicating Bearish Outlook
The crypto market has been showing mixed sentiment, and Ethereum ($ETH) is no exception. According to renowned CryptoQuant analyst ShayanBTC, Ethereum’s futures market is signaling significant pessimism, with funding rates hitting their lowest levels in terms of the 50-day moving average this year. The analyst shared an in-depth report analyzing the current situation.
Declining Ethereum Futures Funding Rates Raise Concerns
#ShayanBTC emphasized that the drop in funding rates is a crucial indicator of traders’ positioning in the perpetual futures market, raising concerns about $ETH’s short-term price movement. In perpetual futures, funding rates are used to balance the demand between long and short positions. When funding rates rise, it signals traders’ preference for long positions, while falling rates suggest a shift toward aggressive short-selling.
Currently, declining funding rates indicate that short sellers dominate the market, betting on Ethereum’s price decline. Meanwhile, buyers show little interest in counteracting this pressure.
#Ethereum's 50-day moving average for funding rates provides a broader view of short-term fluctuations. It has been steadily falling in recent weeks, reaching new lows in 2024, further emphasizing the bearish sentiment. Few traders are willing to place market orders to buy, contributing to downward pressure on Ethereum's price as it struggles to find support.
For Ethereum to recover, there needs to be a rise in demand for perpetual futures, signaling renewed buying interest. Without this shift, $ETH could face further price declines.
Potential for a Turnaround Amid #BEARISH📉 Sentiment
While many traders continue to bet on further price drops, this pessimism could signal a potential turnaround. Much depends on whether buyers step in to stabilize the price. In the unpredictable world of crypto, unexpected reversals are always a possibility.
Source - blockchainreporter.net
