Ethereum (ETH) has declined noticeably over the past week, with price data 
from CoinMarketCap reporting a net 14% decline within this period. At the time 
of the most recent data, ETH is trading around $2,000, significantly lower 
than the past week&#8217;s level near $2,500. Related Reading: Ethereum Price Is Not 
Going To Keep Falling Forever, Analyst Says ETH Funding Rates Signal A Bullish 
Turn In a QuickTake post on the CryptoQuant platform, analyst Amr Taha draws 
attention to recent developments in ETH funding rates, a key sentiment 
indicator in perpetual futures. The funding rate shows the market sentiment, 
whether it&#8217;s optimistic/greedy (positive) or fearful/cautious (negative). 
Typically, when funding is highly positive or negative, it means that too many 
traders are on one side, positions are overleveraged, and then the market 
becomes unstable. At that point, even a small price move in the opposite 
direction can trigger liquidations, causing sharp and fast price moves. 
Although Ethereum&#8217;s funding rate was deeply negative over the week, analyst 
Amr Taha noted there has been a flip as ETH derivatives data shows a clear 
shift toward bullish positioning. Notably, Funding rates have turned strongly 
positive on BitMEX (Bitcoin Mercantile Exchange), reaching 0.049%, their 
highest level since October and well above the previous peak near 0.03. This 
signals aggressive leverage on the long side. Related Reading: XRP Price Has 
Just Reached Most Oversold Level In History And This Analyst Is Predicting A 
Bounce Extreme Optimism In ETH Could Spark Sharp Moves At the same time, ETH 
funding on Binance has moved from deeply negative levels at -0.025% on 
February 5 back towards neutral, indicating that short positions are being 
replaced by new long exposure. In essence, the market has moved from fear to 
optimism. While this shift reflects a rise in bullish sentiments, history 
shows that periods of extreme positive funding driven by leverage often 
increase the risk of liquidations and sharp corrective moves, rather than 
supporting sustained upside. In short, when everyone is bullish at the same 
time, the market becomes easier to knock over. In all, Ethereum Derivatives 
traders have become aggressively bullish, and while that can push price higher 
in the short term, history shows it often increases the risk of sudden 
corrective moves rather than a sustained uptrend. At the time of writing, 
Ethereum trades at $2,089 after a 14.9% decline in the past seven days. 
Meanwhile, the daily trading volume is down by 32.39% and valued at $37.39 
billion. Featured image from Adobe Stock, chart from Tradingview

Ethereum’s Funding Rates Signal Sentiment Flip Across Major Exchanges

South Korean cryptocurrency exchange Bithumb mistakenly distributed 
approximately 620,000 bitcoins, worth around $44 billion, to 695 customers 
during a promotional event. The company quickly acted to restrict trading and 
withdrawals, claiming to have recovered 99.7% of the erroneously distributed 
cryptocurrency within 35 minutes of the incident. The exchange emphasized that 
the mistake was not caused […]

South Korea’s Bithumb Exchange Accidentally Sends $44 Billion in Bitcoin to Users

The latest edition of The Economist points out the dangers surrounding the 
greenback, including the unpredictability of the current administration’s 
actions, the prospect of higher inflation, and upcoming rate cuts if Trump’s 
Fed Chair pick, Kevin Warsh, follows Trump’s playbook. The US Dollar Is Now 
Considered a ‘Dangerous’ Asset That Might Upend the Financial System […]

Now It Is Official: Analysts Consider the Dollar a ‘Dangerous’ Asset

Cathie Wood’s ARK Invest sold 134,472 Coinbase shares across three ETFs while 
buying over 393,000 shares of crypto platform Bullish.

ARK extends Coinbase selling streak with another $22M sale, adds Bullish

Bitcoin is in a bear market and is “getting swept up” with the rest of the 
macro assets, Bitwise CEO Hunter Horsley declared during a television 
interview.

Cryptocurrency price in SEK