The report assessed the coin’s futures market and found that despite the general market consolidation in March, ETH’s funding rates have remained positive, and its open interest has continued to climb.
When an asset’s contract price is higher than its spot price, traders who hold long positions pay a fee to traders shorting the asset. Funding rates return positive values when this happens. According to the analyst, as ETH attempts to reclaim the $4,000 price mark, there has been a “corresponding spike in the funding rates metric.”data showed that the coin’s funding rate was a positive 0.024% at press time. When an asset’s funding rate is positive and grows, more traders hold long positions. This means more market participants are expecting the asset’s price to rise in the short/mid-term than those anticipating a decline.