The Ethereum futures funding rate still higher than the 2023 bear market indicates potential market volatility

Glassnode data shows that the Ethereum futures funding rate is still higher than the bear market in 2023, indicating potential market volatility and far below the peak of 2021. This dynamic illustrates the complex interplay between futures financing rates and potential market trends, also suggesting possible market fluctuations. The Ethereum futures perpetual contract funding rate refers to the average funding rate (in %) set by exchanges for perpetual futures contracts. When the rate is positive, long positions regularly pay short positions; conversely, when the rate is negative, short positions regularly pay long positions. A surge in financing rates often coincides with fluctuations in Ethereum prices, indicating a change in market sentiment.