ETH Funding Rates at All-Time Low as Ethereum Prepares to Ditch PoW

Barring any unforeseen technical challenges, Ethereum will transition to a proof-of-stake consensus mechanism in about one hour, according to EtherNodes estimations.

This time might vary, depending on the state of the miners. With that, it appears that futures traders are already making their move.

  • At the time of this writing, ETH funding rates are at their all-time lowest point, according to data from CryptoQuant. 
img2_cryptoquant_funding_rate
Source: CryptoQuant

 

  • Funding rates are important for futures traders because they can have a considerable impact on their profits or losses. With relatively high leverage, a trader that pays high funding may suffer losses even if the market doesn’t go through excessive volatility.
  • In this particular case, the data from CryptoQuant indicates that short traders are currently the dominant force in the order book and that they are willing to pay long traders.
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Source: https://cryptopotato.com/eth-funding-rates-at-all-time-low-as-ethereum-prepares-to-ditch-pow/