Ethereum Derivatives Market Signals Renewed Optimism

Indicators in the Ethereum (ETH) derivatives market are signaling renewed optimism.

The 30-day moving average of funding rates shows a positive shift, suggesting growing bullish sentiment among futures traders, according to analyst Julio Moreno from CryptoQuant.

After a prolonged decline, this recent uptick indicates that market participants may be turning more bullish. Moreno stated, “In general, positive and increasing funding rates show the willingness of traders to open long positions in the perpetual futures market. It is historically associated with the expectation of higher prices.”


Moreno emphasized that while this slight increase is a positive sign, it does not guarantee a sustainable price rally.

He remarked, “But, the increase in the funding rate 30-day moving average is a positive sign.”

Data from Coinglass indicates that Ethereum’s open interest-weighted funding rate has been trending positively since the U.S. Federal Reserve’s interest rate cut on September 18, currently at 0.0089%. QCP Capital analysts noted improvements in funding rates across major exchanges, attributing this to the recent rate cut. They commented, “Funding rates on major exchanges are improving, and basis yields are becoming more attractive, particularly with the recent interest rate cuts,” which highlights increasing optimism in the crypto derivatives space.


The perpetual futures market significantly influences overall market sentiment and price trends, serving as a barometer of traders’ expectations and offering insights into potential market movements in the coming weeks.

The recent shift in Ethereum’s futures funding rates aligns with a broader market rebound and price uptick. Since the Federal Reserve cut the Federal Funds rate by 50 basis points on September 18, ether has appreciated by over 17%, outperforming bitcoin, which increased by 10% in the same period.