The Ethereum derivatives market is showing signs of renewed optimism, with the 30-day moving average of the futures funding rate showing a shift toward an uptrend, according to Julio Moreno, CryptoQuant’s Director of Research.
CryptoQuant Analyst Claims More Long Positions Opened in Ethereum Futures Market
This increase suggests that investors are increasingly opening long positions in Ethereum’s perpetual futures market, a development that has historically been tied to higher price expectations.
“Positive and rising funding rates generally reflect traders’ willingness to invest in future price increases,” Moreno said in an interview. However, he cautioned that while an increase in the funding rate is a positive sign, it does not guarantee a sustainable price increase for ETH. “The increase in the 30-day funding rate moving average is encouraging, but it is only one factor to consider,” he added.
Data from Coinglass also points to an increasing trend in Ethereum’s open interest-weighted funding rate, which has been on the rise since the Fed’s decision to cut interest rates by 50 basis points on Sept. 18. It currently stands at 0.0061%, indicating growing optimism among traders.
*This is not investment advice.
