The Ethereum derivatives market is showing signs of renewed optimism, indicated by increasing long positions and a rise in the 30-day moving average of the futures funding rate.
Increase in Long Positions
According to CryptoQuant analyst Julio Moreno, the increase in long positions in Ethereum's perpetual futures market is linked to higher price expectations. This development has traditionally been associated with positive price forecasts for ETH.
Futures Funding Rates
Moreno also noted that positive and rising funding rates generally reflect traders’ willingness to invest in future price increases. However, he cautioned that while an increase in the funding rate is a positive sign, it is only one factor to consider.
Trader Optimism
Data from Coinglass also points to an increasing trend in Ethereum’s open interest-weighted funding rate, which has been on the rise since the Fed’s decision to cut interest rates by 50 basis points on Sept. 18. It currently stands at 0.0061%, indicating growing optimism among traders.
In summary, the Ethereum derivatives market is displaying positive signals. It is important to note that despite growing optimism, investors should consider all potential risks and factors affecting the market.
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