Ether Funding Rates Fall Below Bearish Threshold as Prices Decline

Ether (ETH) had two weighted perpetual-futures funding rates below the 0.005% bearish threshold in an Oct. 29 market snapshot, while Bitcoin (BTC) and Ether both fell over 24 hours.

Ether traded at $2,313.12, down 1.74% over 24 hours. Bitcoin stood at $79,907.10, down 1.25%.

Ether’s open-interest-weighted funding rate was 0.0042%, and its volume-weighted rate was 0.0043%. Both were below the threshold used to indicate bearish readings. Bitcoin’s corresponding rates were 0.0069% and 0.0056%, within a neutral range.

On Oct. 24, Ether’s readings were 0.0078% and 0.0082%, while Bitcoin’s were 0.0081% and 0.0074%. The earlier funding-rate snapshot showed all four readings in the neutral range. Both Ether readings were above the threshold on Oct. 24 and below it by Oct. 29. Bitcoin’s rates also declined from Oct. 24 but remained neutral.

Funding rates are periodic payments exchanged between traders with opposing positions in perpetual futures. They help keep contract prices close to the assets they track.