ETHs Negative Funding Rates May Not Be A Buy Signal This Time

Key takeaways:

• Ether dropped 28% in a week to $2,110 as investors cut risk and markets wiped out leveraged traders.

• Spot ETH ETF outflows reached $447 million as Ethereum network activity fell by 47%.

Ether (ETH) plummeted to $2,110 on Tuesday, signaling fragility following a brutal 28% price correction over seven days. Investors retreated into cash and short-term government bonds as the tech-heavy Nasdaq Index also fell 1.4%.

Traders worry that valuations have become overextended and overly reliant on the…