With the Ethereum merger looming, most of the mainstream trading platform Ethereum funding rates fell below -0.4%. Among them, dYdX is -0.61%, Bitmex is -0.6%, Bybit is -0.519%, and Binance is -0.487%.
The funding rate is a measure of the periodic fees that traders in the Ethereum futures market exchange with each other. When the indicator is negative, it means that short traders are paying a premium to long traders to keep their positions, usually suggesting that bearish sentiment is more dominant in the market.
When the indicator is positive, it means that the bulls are currently overwhelming the bears, indicating that the majority of sentiment is bullish. The data shows that the indicator is currently highly negative, which may lead to a short squeeze.