Ethereum Short Sentiment Eases as Funding Rates Turn Neutral

Ethereum’s bearish sentiment has eased significantly, with funding rates on major centralized and decentralized exchanges returning to neutral, according to Coinglass data. This shift comes as Bitcoin rebounds above $70,000 and Ethereum briefly surpasses $2,100. Despite the overall bearish market, the neutral funding rates suggest a reduction in short pressure on Ethereum.

Funding rates, which are fees set by trading platforms to align contract prices with underlying asset prices, indicate market sentiment. A neutral rate suggests balanced sentiment between long and short positions, contrasting with the broader bearish market trend.