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ETH funding rate turns negative: Are ETH bears back in control?

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Eth Funding Rate Turns Negative: Are Eth Bears Back In Control?

Eth Funding Rate Turns Negative: Are Eth Bears Back In Control?

Ether’s price trajectory has remained tepid as institutional interest wavered and on-chain activity cooled, even as Ethereum developers push forward with upgrades designed to improve scalability and wallet security. Over the last month, the asset has struggled to sustain above $2,100, with a brief 7% uptick overshadowed by renewed selling pressure. Net outflows from spot ETFs reached roughly $225 million, underscoring dampened demand from traditional finance investors just as staking yields lag behind competing crypto yields. In parallel, on-chain metrics show a cooling in activity—base-layer fees averaged about $2.3 million weekly, down sharply from an early February peak near $8 million—while daily transaction counts hovered around 14 million.

Key takeaways

  • Ether price faces resistance to clear sustained gains above the $2,100 level, despite a temporary 7% rise in one session and signs that traders are paring leverage rather than building bullish bets.
  • ETF-related flows point to fragile institutional demand, with $225 million in net outflows versus prior inflows, as staking yields fail to outpace stablecoin alternatives.
  • Derivatives activity shows a nuanced picture: perpetual futures have trended negative, suggesting appetite for downside protection, while the 30-day options delta skew remains near neutral, indicating a cautious stance from option buyers.
  • On-chain fundamentals reveal a softer near-term environment: weekly base-layer fees around $2.3 million and a still sizeable but evolving TVL of roughly $56 billion.
  • Ethereum roadmap progress—account abstraction and the Hegota upgrades—reflects continued innovation, including plans to pay gas in non-ETH tokens and to streamline finality, though these developments have not yet sparked a meaningful uplift in demand for Ether (CRYPTO: ETH).

Ether (ETH) has traded in a narrow range after retaking a push above $2,000 and then failing to hold gains, with a persistent risk-off mood weighing on risk assets. The broader market context remains fragile, as investors weigh the appeal of staking rewards against yields available from competing crypto products. The recent ETF flows offer an imperfect gauge of institutional appetite: while some weeks show inflows, overall the trend has tilted toward net withdrawals, pressuring Ether bids on spot markets.

In the derivatives space, ETH perpetual futures dipped into negative territory on Tuesday, signaling a tilt toward bearish positioning. This metric has lingered below its neutral range of roughly 6%–12% annualized funding for the better part of a month, hinting at a lack of conviction for a sustained breakout. By contrast, the ETH options risk gauge held near the neutral zone (-6% to +6%), with puts trading at a modest premium to calls—an indication that some market participants are seeking downside protection even as broader sentiment remains unsettled. Ethereum’s total value locked (TVL) stands at about $56 billion, a figure that underscores the chain’s retained mainstream appeal even as demand ebbs and flows.

From an on-chain operations perspective, activity on the base layer has cooled. Average weekly fees settled around $2.3 million after spiking to around $8 million in early February, suggesting traders are paring activity or seeking efficiency through layer-2 solutions rather than increasing on-chain transactions in native Ether. Transaction counts over the past week hovered around 14 million, a sign that interest is not converging on a rapid upcycle at current price levels. Layer-2 rollups are central to the upgrade narrative, but the expected uplift in native Ether demand has yet to materialize in a meaningful way.

Another facet of the narrative is the evolving perception of Ethereum’s roadmap. Vitalik Buterin has indicated that account abstraction—a shift toward smart accounts that could improve user experience and security—will likely arrive within a year, after more than a decade of development. The associated Hegota fork, which introduces gas payments in non-ETH tokens via specialized DEXs, alongside a “general-purpose public mempool” and removals of certain privacy platforms’ public broadcasters, could alter how users pay for transactions and how data is organized on-chain. These changes, if implemented smoothly, may gradually reduce bottlenecks and enhance privacy, but they have not yet translated into a decisive pickup in Ether demand.

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Market participants also weigh the health of the Ethereum treasury and governance-related developments. Sharplink (SBET US), the treasury vehicle linked to Ethereum insiders and chaired by a figure closely tied to the ecosystem, reported a net loss of $735 million in 2025. The setback underscores the risk profile of on-chain treasuries and the potential liquidity challenges that can accompany large-scale treasury management operations in a bear market environment. While this is not a direct price driver, it does color investors’ confidence in Ethereum’s ecosystem funding and long-term sustainability.

Beyond upgrades and funding dynamics, the slow pace of native-chain scalability improvements has tempered enthusiasm for Ether. The market has been watching for concrete progress on account abstraction and related scalability shims, while also keeping an eye on gas economics within cross-chain constructs. In this environment, Ether’s momentum has remained constrained, with the broader crypto market wrestling with risk sentiment and macro considerations that influence ETF inflows, staking yields, and liquidity conditions across the sector.

The confluence of tepid price action, cautious ETF flows, and evolving protocol upgrades suggests Ether is navigating a transitional period: the anticipation of structural improvements is real, but immediate demand catalysts have not yet arrived. The absence of a strong directional breakout—despite some positive signals around network upgrades and security improvements—points to a market that is waiting for clearer catalysts or a shift in macro liquidity to re-energize bids for Ether.

Why it matters

For investors, the current environment highlights the importance of differentiating between short-term price momentum and long-run network value. Ethereum remains the dominant platform for smart contracts and decentralized applications, with TVL and developer activity continuing to anchor the ecosystem—even as near-term demand indicators show fragility. The ongoing upgrades, particularly around account abstraction and gas-payment innovations, could, if fully realized, lower friction for users and merchants and help rebuild confidence in Ethereum’s on-chain utility.

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From a builder’s perspective, the roadmap emphasizes security, efficiency, and privacy enhancements that could unlock new use cases and improve end-user experience. The Hegota upgrade, with its approach to gas payments and mempool management, signals a willingness to rethink fundamental economics and data flows on the network. If governance and implementation proceed smoothly, developers could accelerate rollouts of scalable dApps, which in turn may attract new capital and spur renewed demand for Ether.

For the market as a whole, Ethereum’s trajectory continues to influence how investors evaluate layer-1 chains and the broader risk appetite in crypto markets. ETF dynamics, staking options, and on-chain metrics will remain intertwined with macro cycles, regulatory developments, and the pace at which scalability improvements translate into tangible user adoption. In this environment, ETH’s performance will depend on a mix of technical progress, product-market fit for layer-2 solutions, and the capacity of institutional participants to translate macro liquidity into constructive demand rather than speculative positions alone.

What to watch next

  • Follow updates on the US ETF staking pathway and any subsequent inflows or outflows in the coming quarters to gauge institutional appetite for Ether exposure.
  • Monitor progress on account abstraction finality and the timeline for the Hegota fork, including any security or privacy-related milestones.
  • Track layer-2 adoption metrics, including transaction throughput and fee dynamics, to assess whether these solutions effectively translate into higher on-chain activity for Ether.
  • Observe changes in staking reward economics relative to competing yield sources, and any shifts in stablecoin yields that influence capital allocation within crypto treasuries.
  • Watch governance and treasury developments surrounding Sharplink and other ecosystem vehicles for potential spillovers into market sentiment and long-term funding models.

Sources & verification

  • Laevitas.ch data on ETH perpetual futures funding rates and the associated market dynamics referenced in the discussion of negative territory.
  • Laevitas.ch ETH 30-day options delta skew data used to illustrate risk sentiment and option market positioning.
  • Stablecoin yield comparisons, particularly Sky Lending (formerly MakerDAO), with yields around 3.75% versus staking at roughly 2.8%.
  • Reported 2025 net loss of Sharplink (SBET US) at $735 million, as noted in the article’s references to ecosystem treasury performance.

Ethereum market reaction and key details

Ether (CRYPTO: ETH) has faced a challenging backdrop in recent weeks as ETF outflows and a cautious risk appetite converge with ongoing protocol evolution. The ongoing debate over how best to price and pay gas — including considerations around non-ETH payment options and the potential for a public mempool—frames investors’ expectations for near-term catalysts. While the fundamentals point to a robust long-term role for Ethereum in decentralized finance and smart contracts, the near-term price action suggests traders are prioritizing risk management over aggressive exposure. For now, the market is awaiting clearer signals from upgrades, regulatory movements, and institutional flows before committing to a sustained bid higher than the current range around the $2,000s to $2,200s band.

Market participants should continue to monitor the evolving relationship between staking economics and competing yields, as well as the degree to which Layer-2 ecosystems translate on-chain activity into meaningful Ether demand. In addition, the health of the Ethereum treasury and governance actions surrounding major ecosystem initiatives will be important for assessing long-term resilience and strategic direction. The next steps for Ethereum hinge on delivering scalable, secure, and user-friendly improvements that can convert optimism about upgrades into tangible use cases and capital inflows.

This article was originally published as ETH funding rate turns negative: Are ETH bears back in control? on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.

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What next as Bitcoin steady above $70,000

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Crypto community fears Iran choking oil supply and crashing markets, but that may be overblown

Bitcoin touched $71,612 on Tuesday evening before settling back to $70,036 by Wednesday’s Asian session, as oil price slide revved up risk sentiment.

A key catalyst was a Wall Street Journal report that the International Energy Agency had proposed the largest crude reserve release in its history, exceeding the 182 million barrels released in 2022 after Russia’s invasion of Ukraine.

The proposal responds to Persian Gulf production cuts that have removed roughly 6% of global oil output since the Iran war began, sending jet fuel and cooking gas prices soaring worldwide.

Brent crude dropped below $90 per barrel on Wednesday after plunging 11% in the prior session. That matters for crypto because oil has been the transmission mechanism connecting the Middle East conflict to every risk asset on the planet. Higher oil means stickier inflation, which means no rate cuts, which means tighter liquidity and further pressure for risk assets.

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Bitcoin was trading at $70,036 on Wednesday morning after reaching as high as $71,612 on Tuesday evening, up 2.5% on the week. The move from Monday’s low near $66,000 to Tuesday’s high amounts to roughly 8.5% in two days, though the overnight pullback gave back some of those gains.

“Bitcoin trading above $70,000 tells you buyers are trying to push this market out of consolidation, but it still has to prove it can hold,” said Daniel Reis-Faria, CEO of ZeroStack, said in a mail. “The difference this time is that leverage had cooled off a bit before the move higher, which gives it a more stable setup.”

“Now it comes down to whether Bitcoin can stay above $70,000 and build from there, or whether it slips back into the same pattern we’ve been in for weeks,” he added.

Elsewhere, FxPro analysts noted that bitcoin is forming a series of higher local lows since the end of February, the first structural sign of buyers gaining confidence within the range.

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But they flagged $73,000 as the level that matters, where last week’s peak and the 50-day moving average sit together.

The broader market was calm. Ether held at $2,034, down 0.3% on the day but up 2.8% on the week. BNB was flat at $643. XRP edged up 0.3% to $1.38 with a 1.7% weekly gain. Solana added 0.2% to $86.42 but remains down 0.8% over seven days, still the weakest major on a weekly basis.

Dogecoin was up 1% to $0.093, holding onto some of Tuesday’s Musk-driven gains.

The Fed meeting on March 17-18 remains the next major event. With oil potentially easing on the IEA reserve release, the stagflation scenario that had been pricing into markets last week looks slightly less severe.

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If crude stays below $90, the argument for rate cuts later this year gets marginally stronger. Bitcoin’s 90-day correlation with the S&P 500 is still at 0.78. Whatever the Fed signals, crypto will trade it.

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XRP-linked firm to acquire Australian financial services license

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XRP-linked firm rolls out platform after $1 billion GTreasury deal

Ripple announced plans on Wednesday to secure an Australian Financial Services License through the proposed acquisition of BC Payments Australia Pty Ltd, per a release shared with CoinDesk.

The acquisition, which is still subject to completion, would allow Ripple to offer its full payments stack in Australia, covering onboarding, compliance, funding, foreign exchange, liquidity management, and payout through a single integration.

Australian customers currently using Ripple Payments include Hai Ha Money Transfer, Stables, Caleb & Brown, Flash Payments, and Independent Reserve.

“Australia is a key market for Ripple, and an AFSL strengthens our ability to scale Ripple Payments across the region,” said Fiona Murray, managing director for Asia Pacific, in a statement.

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The regional numbers back up the push. Ripple said its APAC payments volume nearly doubled year-on-year in 2025, though it didn’t disclose specific figures.

That growth sits alongside the $100 billion in total processed volume the company reported last week when it announced managed custody, virtual account collections, and stablecoin settlement capabilities across 60 markets.

Ripple also said it is participating in Project Acacia, an initiative led by the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre focused on digital asset infrastructure.

The licensing approach is notable. Rather than applying for an AFSL directly, Ripple is acquiring a company that already holds one. That’s a faster path to market but means the license is contingent on the deal closing, which hasn’t happened yet.

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XRP was trading at $1.38, up 0.3% on the day and 1.7% on the week.

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Bitcoin price stabilizes at $70K as open interest drops

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Bitcoin price attempts $70K base formation as open interest drops across exchanges - 1

Bitcoin price is stabilizing near $70,000 as declining derivatives leverage and falling retail inflows hint at a possible base forming in the market.

Summary

  • Bitcoin is trading near $70,000, close to the upper end of its weekly range.
  • Retail inflows to Binance have dropped sharply while open interest across exchanges continues to trend lower, signaling reduced leverage.
  • Technical indicators show BTC consolidating between $67K and $71K as volatility tightens ahead of a potential breakout.

At press time, Bitcoin (BTC) was trading at $70,718, up 4.2% over the past 24 hours. The asset is now near the top of its recent weekly range thanks to the move.

Following February’s volatility, Bitcoin has shown signs of consolidation over the last seven days, trading between $65,962 and $73,669. The cryptocurrency is still 46% below its October 2025 all-time high of $127,080 despite the recent upswing. 

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Alongside the price increase, market activity has increased. With a 49% rise and a 24-hour trading volume of $53.8 billion for BTC, traders appear to be returning to the market.

Derivatives data also shows rising activity. According to CoinGlass data, Bitcoin futures trading volume increased 13% to $76 billion, while open interest climbed 5.72% to $46 billion.

Despite the short-term increase, longer-term data show that leverage across exchanges has been trending lower.

Retail flows and leverage show cooling market conditions

A Mar. 10 report from CryptoQuant contributor Amr Taha points to a sharp decline in retail Bitcoin inflows to Binance over the past month.

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The analysis tracks cumulative Bitcoin deposits to the exchange over 30 days, separating activity from smaller investors and large holders. According to the data, retail inflows to Binance dropped significantly between Feb. 6 and Mar. 10.

During that period, retail deposits fell from around $14.1 billion to roughly $6.3 billion, a drop of about $7.8 billion. The current level is the lowest recorded since mid-May 2024, suggesting smaller investors are sending fewer coins to exchanges.

Open interest across derivatives markets has also been declining. The report notes that several major exchanges have seen a reduction in futures positioning in recent weeks.

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Bitcoin open interest on Binance was $3.45 billion on March 10, down from the $3.8 billion level noted on April 7, 2025. That earlier reading coincided with a period when Bitcoin formed a major market bottom.

According to Taha, widespread drops in open interest often signify a reduction in traders’ leverage. Once excessive speculation is removed from the market, periods of deleveraging can occasionally result in more stable price action.

Bitcoin price technical analysis

From a technical standpoint, Bitcoin is still recovering from the sharp decline seen in February. The price is still below the 20-day moving average, which is the midline of the Bollinger Bands. This level often acts as resistance when markets are trying to recover from a downtrend.

Bitcoin price attempts $70K base formation as open interest drops across exchanges - 1
Bitcoin daily chart. Credit: crypto.news

At the same time, the chart shows that Bitcoin is moving sideways between $67,000 and $71,000, indicating that the market may be establishing a base following the recent sell-off. Several recent candles have longer wicks and smaller bodies, which shows hesitancy among traders.

Volatility has also started to contract. Bollinger Bands are gradually narrowing, a pattern that comes before a more significant shift in either direction.

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Momentum indicators show a slight improvement. The relative strength index is now hovering around 50, a neutral reading, having recovered from oversold levels near 20–30 during February’s decline. 

$66,000 to $67,000 continues to be the crucial support range for Bitcoin in the near future. Holding this level could help maintain the current consolidation structure.

On the upside, $71,000 to $72,000 stands as the next resistance area. A break above that range could signal stronger recovery momentum, while rejection there may keep Bitcoin trading sideways in the near term.

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Ripple targets Australian financial services license with latest acquisition

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Ripple targets Australian financial services license with latest acquisition

Ripple has announced plans to secure an Australian financial services license by acquiring a local payments firm in the country.

Summary

  • Ripple plans to obtain an Australian Financial Services License through the acquisition of BC Payments Australia.
  • New regulations set to take effect by June 30, 2026, would require crypto companies operating in Australia to obtain a license.

Ripple said it will obtain the AFSL license through the acquisition of BC Payments Australia Pty Ltd, a payments company linked to the European Banking Circle Group. A deal is still underway and is expected to close on April 1 after the standard closing process is finalized.

“Australia is a key market for Ripple,” Ripple’s APAC Managing Director Fiona Murray said in an accompanying statement, adding that it will help Ripple Payments “manage the full lifecycle of a transaction, from onboarding and compliance through funding, FX, liquidity management, and final payout, while integrating both traditional banking rails and digital assets.”

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Ripple’s decision to pursue the license comes as Australia’s financial regulator has unveiled updated regulations for the country’s crypto sector.

Starting June 30, 2026, crypto firms operating in Australia would be required to obtain an Australian Financial Services License before they are allowed to offer certain financial services to local customers.

Over the past years, Ripple has expanded its global regulatory footprint by focusing on securing licenses across key markets around the world.

In 2025 alone, Ripple managed to secure payment licenses in Singapore, the UAE, and the UK. The company was also granted conditional approval for a national trust banking charter by the U.S. Office of the Comptroller of the Currency alongside a handful of other firms.

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Securing these regulatory approvals has helped Ripple strengthen its push for broader institutional adoption of the XRP (XRP) ecosystem and its flagship stablecoin RLUSD.

As previously reported by crypto.news, Ripple became one of the world’s top most valuable private companies, with its valuation reaching roughly $50 billion.

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Crypto is Just Finance on Different Infrastructure: ASIC

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Crypto is Just Finance on Different Infrastructure: ASIC

Blockchain and crypto are technologies performing the same functions as existing financial infrastructure, so they shouldn’t be treated as separate asset classes when crafting legislation, according to the fintech chief of Australia’s securities regulator.

In a paper presented at the Melbourne Money & Finance Conference on Wednesday, Australian Securities and Investments Commission’s (ASIC’s) head of fintech, Rhys Bollen, said crypto should be regulated on “economic substance rather than technological form.”

Tokenized securities should fall within securities laws, and stablecoins should trigger payment services legislation, Bollen said, while noting that other elements of crypto may be subject to consumer protection laws.

Bollen’s approach contrasts with crypto-specific regulatory frameworks in other countries, such as the CLARITY Act in the US and the Markets in Crypto-Assets Regulation framework in Europe.

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Bollen argued that the three main financial functions — capital allocation, payments and risk management — have evolved with technological advancements and that distributed ledger technologies, such as blockchain, shouldn’t be treated differently:

“Digital assets largely represent new technological instances of longstanding financial activities. While the mechanisms of issuance, transfer and record-keeping have changed, the underlying economic functions served by these instruments have not.”

“Regulatory systems have repeatedly adapted to technological change – from paper instruments to electronic records – without abandoning foundational principles such as consumer protection, market integrity and systemic stability,” Bollen added.

Australia isn’t crafting one big crypto bill

Australia is already starting to adopt this approach, with the main piece of crypto legislation, the Digital Asset Framework bill, seeking to merely amend parts of the Corporations Act, Bollen said.

“The Bill does not abandon the existing financial services framework. Instead, it introduces tailored amendments that integrate digital asset platforms into the established regulatory architecture.”

The Australian crypto market has also been given guidance through ASIC Information Sheet 225, which states that existing definitions of “financial product” and “financial service” under the Corporations Act can apply to digital assets.

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