Ethereum’s funding rates and price decline point to bearish shift

Onchain Highlights

DEFINITION:The average funding rate (in %) set by exchanges for perpetual futures contracts. When the rate is positive, long positions periodically pay short positions. Conversely, when the rate is negative, short positions periodically pay long positions.

Ethereum’s perpetual futures funding rate has recently dipped off its bullish premium. This trend is evident in both short-term and long-term views, reflecting increasing bearish sentiment among traders.