- Ethereum’s long contracts hit a record high
- Traders with $100,000 long contracts pay $98 per funding session
- Ethereum price analysis – fundamentals look better
Ethereum News Today – a recent look at the Ethereum long contracts on BitMEX has just hit a new record high. The number two largest digital asset by market cap has had a horrid last few weeks. The coin network’s long contracts have posted a record high on BitMEX. Now the question is how can Ethereum trigger a big correction?
The price Ethereum is pulling back with speed and technical analysts are seeing the coin reach sub-$200 via the short-term outlook. Despite being among the top-performing digital currencies over the last two months, ETH is rapidly losing its momentum. At press time the price of Ether was trading at $222.80.
Ethereum (ETH) Price Today – BTC / USD
Traders With $100,000 Long Contracts Pay $98 Per Funding Session
On Bitfinex exchange, the ETH/USD pair has hit a record high point at the 659,247 area. Meaning it has surpassed its previous high point of 579,785 long contracts. This absurdly high sum of ETH long contracts has led the funding level of the Ether perpetual contract to increase. On the BitMEX exchange, the funding for Ethereum’s perpetual swap contracts is still hovering at the 0.098%. This means that if the trader has up to $100,000 long contracts open, he/she will be paying a whopping $98 funding session.
Since the funding occurs every 8 hours, the affected trader would have to be paying at least $300 per day. This payment will be to have their long contracts open. This problem occurs whenever the price of the coin starts to drop and the long contracts hit fresh highs as the funding rate remains extremely high.
In a situation where the Ethereum price begins to drop and traders continue to pay high funding rates just to keep their long contracts open, it forces holders of long contracts to adjust their positions. Hence, the price of the coin will have to correct for Ethereum long contracts to stabilize.
Ether Price Changing Hands at $222.80 at Press Time
It appears that Ethereum’s fundamentals are looking slightly better on the day as the coin’s price is up by 0.88% in the last 24-hours of trade. Meanwhile, Ethereum has a total market capitalization of $24,492,008,138 at press time with a 24-hour trade volume of $17,693,793,537. Ethereum also noted a total circulating supply of 109,926,339 ETH during the same period. The fundamentals are looking better than they were weeks ago. Maybe this new upward action will continue.