Ethereum Hits High as CEX ETH Funding Rates Stay Neutral
Coinglass data on August 23 shows that Ethereum surged to a new intraday high. Despite the rally, ETH funding rates on major centralized exchanges remained broadly neutral. This indicates a balanced long-short positioning among traders.
Funding rates are periodic fees on perpetual contracts that align derivative prices with the spot market. A 0.01% reading is considered neutral. Rates above 0.01% signal bullish bias, while below 0.005% suggest bearish sentiment. Currently, ETH funding rates hover around the neutral threshold, reflecting caution in leverage use. Traders view this stability in Ethereum funding rates as supportive of sustained price momentum without overextension risks.
Neutral
Ethereum’s record intraday high paired with neutral ETH funding rates suggests a balanced leverage environment. Neutral funding rates indicate that neither long nor short traders dominate, reducing the risk of forced liquidations from extreme positions. Historically, when funding rates remained neutral at price peaks—such as in May 2021—Ethereum entered consolidation phases rather than sharp corrections.
Short-term, this stability in funding rates may support steady price momentum while allowing traders to adjust positions without excessive funding costs. It implies cautious optimism: market participants are willing to sustain long positions but are wary of rapid leverage increases.
Long-term, continued neutral funding at elevated price levels can underpin a gradual uptrend, as it avoids the overheating that often precedes steep pullbacks. Overall, the news points to a neutral outlook, with a tilt toward sustained stability rather than immediate volatility.