{"id":576861,"date":"2022-09-13T12:34:44","date_gmt":"2022-09-13T11:34:44","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=576861"},"modified":"2022-09-13T12:34:57","modified_gmt":"2022-09-13T11:34:57","slug":"traders-shorting-ethereum-the-merge","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/traders-shorting-ethereum-the-merge\/","title":{"rendered":"Traders Shorting Ethereum Ahead of The Merge, ETH Funding Rates Negative"},"content":{"rendered":"\n<ul><li>Traders are shorting ETH as The Merge is set to arrive in a few days.<\/li><li>These traders could simply be hedging risk.<\/li><li>Meanwhile, the Ethereum PoW token ETHW is receiving a lot of attention as an airdrop is imminent.<\/li><\/ul>\n\n\n\n<p>Ethereum\u2019s Merge is seeing heavy activity in the market, with many traders shorting ETH. Among the trading activity taking place is the fact that there is a bearish sentiment as seen in the derivatives market. The funding rates of perpetual futures contracts of ETH has fallen to its lowest since July 2021.<\/p>\n\n\n\n<p>It\u2019s an interesting development given the fact that The Merge is one of the most hotly anticipated events in the crypto market at the movement. Ethereum will transition to Proof-of-Stake, which has enormous implications for the network and the market. It appears that some crypto enthusiasts don\u2019t see The Merge to have an unquestionable positive effect on the price of ETH.<\/p>\n\n\n\n<p>It could also be that traders are <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-12\/crypto-traders-hedge-against-ether-disappointment-ahead-of-merge\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">hedging against ETH<\/a>, simply to offset any risk that might come with any disappointment in the lack of a strong enough rally following the event. With the negative funding rate that is currently in place, short traders are paying high fees to maintain their position.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"366\" src=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2022\/09\/bybt_chart-1024x366.png\" alt=\"The Merge anticipation\" class=\"wp-image-576862\" srcset=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2022\/09\/bybt_chart-1024x366.png 1024w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2022\/09\/bybt_chart-300x107.png 300w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2022\/09\/bybt_chart-770x275.png 770w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2022\/09\/bybt_chart-269x96.png 269w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2022\/09\/bybt_chart-746x266.png 746w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2022\/09\/bybt_chart-1376x491.png 1376w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2022\/09\/bybt_chart.png 1400w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" title=\"\"><figcaption>ETH Funding Rate History: <a href=\"https:\/\/www.coinglass.com\/funding\/ETH\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Coinglass<\/a><\/figcaption><\/figure>\n\n\n\n<p>Funding rates are the payments made by traders to keep their contract price near the index price. Negative funding rates indicate traders are shorting, and vice versa. On the upside, with negative funding rates, it means traders can buy ETH futures contracts at a price lower than the index price.<\/p>\n\n\n\n<p>Perhaps it could be that some of these traders are expecting The Merge to encounter some hitches. However, the testnet Merge\u2019s have been roundly successful, with their integrations often resulting in a bump in ETH\u2019s price.<\/p>\n\n\n\n<p>Furthermore, there is no reason to think that the price expectation of short-term traders are indications of future price. These traders look to make their money in the short term, so the <a href=\"https:\/\/en.ethereumworldnews.com\/merge-increase-ethereum-eth-deflation\/\" target=\"_blank\" rel=\"noreferrer noopener\">overall sentiment<\/a> of Ethereum from the community at large is much more significant.<\/p>\n\n\n\n<h2>Ethereum PoW Airdrop Getting a Lot of Attention<\/h2>\n\n\n\n<p>The ETHPoW network, which will remain on the Proof-of-Work mechanism, is set to airdrop ETHPoW tokens to holders of ETH. There are many in the market who are taking advantage of this, so that they can make a little extra profit.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The Ethereum Merge is scheduled to take place on 13 September. Christmas season is here again. <br><br>ETH holders will soon be airdropped ETH PoW tokens. What should you do to best position yourself?<br><br>Here are 7 steps you may consider to fully take advantage of the Merge:<\/p>&mdash; Bobby Ong (@bobbyong) <a href=\"https:\/\/twitter.com\/bobbyong\/status\/1566616585015422976?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">September 5, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Users who want the ETHW token must have the ETH token on a supported wallet. They must also remove ETH liquidity from DeFi protocols.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Will Lido support ETHPoW?<br><br>Lido has been built to be a core pillar of PoS Ethereum and as such has no plans to support ETH PoW. <br><br>There have been no governance proposals to do so, so unless there is one, Lido will not support the distribution of ETH PoW tokens to stETH holders.<\/p>&mdash; Lido (@LidoFinance) <a href=\"https:\/\/twitter.com\/LidoFinance\/status\/1568582833299406849?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">September 10, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>However, not everyone is supporting the ETHPoW chain. Holders of stETH through Lido, for example, will not be recipients of the airdrop. Layer 2 scaling solutions like Optimism, Arbitrum, Polygon, and Avalanche also do not support the fork.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Traders are shorting ETH as The Merge is set to arrive in a few days. These traders could simply be hedging risk. Meanwhile, the Ethereum PoW token ETHW is receiving a lot of attention as an airdrop is imminent. Ethereum\u2019s Merge is seeing heavy activity in the market, with many traders shorting ETH. Among the trading activity taking place is the fact that there is a bearish sentiment as seen in the derivatives market. The funding rates of perpetual futures [&hellip;]<\/p>\n","protected":false},"author":52,"featured_media":574236,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[947,823,2],"tags":[48,83,1322,162,108698,108680],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/576861"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/52"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=576861"}],"version-history":[{"count":1,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/576861\/revisions"}],"predecessor-version":[{"id":576864,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/576861\/revisions\/576864"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/574236"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=576861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=576861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=576861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}