Ether Funding Turns Negative, But Bears Remain In Control: Why?

Ether (ETH) has struggled to maintain levels above $2,100, leading to a lack of interest in leveraged bullish positions, as evidenced by the annualized funding rate for perpetual futures dipping into negative territory. This bearish signal persists despite a recent 7% price rise, reflecting a broader disappointment stemming from a significant price decline over six months and cooling on-chain activity, with weekly base layer fees dropping substantially.

While ETH options metrics showed a neutral risk gauge, with put options trading at a slight premium, institutional demand proxies—spot ETH ETFs—experienced $225 million in net outflows, partly due to native staking rewards underperforming stablecoin yields. Furthermore, excitement over the ETF staking approval has not translated into sustained demand, coinciding with a broader market downturn and negative financial results from Ethereum treasury firm Sharplink.

Positive developments, such as upcoming network upgrades like account abstraction and the Hegota fork, which promises features like paying gas in non-ETH tokens, have yet to stimulate demand. Overall, derivatives and on-chain data suggest low conviction for a breakout above $2,200, but conditions are not worsening, indicating bears maintain control without overwhelming dominance.

(Source：Cointelegraph)