Ethereum's Biggest Upgrade Yet Causes Funding Rates to Drop
After the "Merge" was completed, the funding rates for Ethereum dropped sharply. This event was the most anticipated upgrade in Ethereum's history.
It's good to see that funding rates are returning to normal levels after the Ethereum merge. This event was a major upheaval for the network, and it's great to see that things are beginning to stabilize. I think this is a positive sign for the future of Ethereum, and I'm excited to see what the future holds for this powerful platform.
Funding Rates Stabilizing After Recent Volatility
The days leading up to the Ethereum Merge were extremely volatile for the crypto market. Ethereum itself bore the brunt of this, and even though the days leading up to the upgrade were filled with positive movement, it quickly changed.
Ethereum funding rates have nosedived following the recent Merge upgrade. The rates fell from just below neutral levels at around negative 0.02% to negative 0.35% by the time the upgrade was finalized. This follows the sell-offs that rocked the market at the same time. In the days leading up to the Merge, FTX longs had seen a total of 9.92% paid by shorts to hedge their positions on the exchange.
It is clear that the market is still seeing a lot of Ethereum holders who maintain long exposure to the digital asset, despite the sell-offs. This is a positive sign for the future of Ethereum, as it shows that there is still a lot of confidence in the digital asset.
Ethereum's Price Might Recover Soon, According to Analysts
With funding rates recovering back to pre-Merge levels, it shows that there is still bullish sentiment among investors. This sustained bullish sentiment continues to prop up the price of the digital asset even through the bear market. This is a positive sign for the future of the digital asset, as it indicates that investors are still confident in its long-term prospects despite the current market conditions.
It is encouraging to see Ethereum beginning to stabilize after the recent sell-offs. This is a sign that the market is maturing and that investors are becoming more savvy. Accumulators are now able to purchase the digital asset without sacrificing too much of their previous value, which is a positive development.
Even though the market is volatile due to the FOMC, support for ETH is still increasing. Exchange outflows have been higher than inflows for ETH over the last 24 hours, indicating that more and more people are accumulating ETH. This is a positive trend that is likely to continue in the future.
If ETH can maintain its support level at $1,250, this could be a good sign for the digital asset.
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