Funding Chads UpSep 2, 2021
Funding was at healthy levels throughout August, but made a massive push up as traders aped into ETH perp longs. Funding began to spike just before ETH’s monster candle yesterday, which makes it clear that the perp market played a key role in pushing ETH above $3,500.
Funding at high levels is a concern, as it implies more leverage in the market, and thus more traders that could be caught offside and liquidated. However, if we zoom out, funding isn’t all that high compared to what we saw in May this year.
All in all, it seems like the market is starting to accept that this cycle isn’t over. But just to play devil’s advocate, this could also be the most elaborate bull trap in the history of crypto.