Those who pay attention to data have probably noticed that, whether it's mainstream CEX or DEX, the funding rate has been continuously dropping. More and more people in the market are becoming bearish.
Honestly, this signal is much more reliable than “rumors.” The funding rate is like the collective heartbeat of the market. Having dropped to this level, many people are starting to panic, either cutting their positions or flipping to short.
I remember the last time the rate dropped to this range was on August 3rd. At that time, ETH was hovering around 3400, and many people thought it would drop further. Not long after, it became the bottom of the last correction.
Some people see bearish signals and rush to short, but they often miss the timing. Back when it was at 3400, I knew a friend who panicked and sold all his ETH, only to watch the price surge to 3800, slapping his thigh and cursing himself for reacting too quickly.
The market is never determined by a single indicator. When the rate is bearish, it’s essential to combine it with the previously mentioned position management.
How to respond this time still depends on your own timing.
