Ethereum News Today: Ethereum Funding Rate Turns Negative as Price Falls Below $3,600

Ethereum’s funding rate turned negative for the first time since late June as its price dipped below $3,600, signaling a potential buying opportunity that retail investors quickly seized [1]. Despite a sharp sell-off that led to $115.8 million in long liquidations over five hours, Ethereum demonstrated resilience by rebounding toward its average trading range. This contrasted with Bitcoin, which continued to face selling pressure under $116,000 amid heightened market uncertainty.

Retail investors were instrumental in stabilizing Ethereum’s price during the decline. Data from Hyblock shows they absorbed most of the long liquidations but swiftly moved to buy ETH at lower levels, particularly around $3,600. These investors maintained net long positions throughout the event, reinforcing their role as a stabilizing force in the market. Whale activity, meanwhile, remained relatively steady, with larger traders holding longer-term positions and avoiding the short-term volatility [1].

The negative funding rate is a significant indicator in the crypto market, as it reflects an imbalance between long and short positions. When short sellers pay longs, it often signals oversold conditions and a potential price rebound. Historical trends suggest that negative funding rates have preceded upward movements in both Ethereum and Bitcoin, making them a key metric for market participants [1].

The ETH/USDT liquidation heatmap from Hyblock highlights the intensity of the recent sell-off, with significant short positions at risk near $3,900. The price briefly hit $3,600, triggering large-scale long liquidations, but quickly bounced back. These patterns help traders identify critical price levels where market behavior is likely to shift [1].

While Ethereum showed signs of recovery, Bitcoin struggled under $116,000. This divergence can be attributed in part to broader macroeconomic factors, including newly announced U.S. tariffs under President Donald Trump, which added to market uncertainties and contributed to Bitcoin’s downward trend [1].

In summary, the shift in Ethereum’s funding rate, coupled with strong retail buying activity, points to a possible stabilization and eventual rebound in the altcoin’s price. The contrast with Bitcoin’s ongoing struggles highlights the uneven performance across the crypto market, driven by divergent investor behavior and external macroeconomic pressures.

Source: [1] ETH Funding Rate Turns Negative Amid Price Dip Below $3,600 as Retail Buyers Step In (https://en.coinotag.com/eth-funding-rate-turns-negative-amid-price-dip-below-3600-as-retail-buyers-step-in/)