Key Takeaways:
ETHFI fell double digits in 24 hours as the funding rate hit -0.0101%, its lowest since April, with whales driving outflows.
CoinGlass data shows more than 50% of the $57.33 million in perpetual open interest is positioned short, with the negative funding rate confirming leveraged traders are betting on further downside.
Liquidation data over the past 24 hours shows $342,009 in long positions wiped out versus $15,480 in shorts. The whale-retail delta, tracked by CoinGlass, puts whales in the driver's seat, with spot netflow at $2.2 million over 30 days, $205,000 over seven days, and $271,000 over three days.
Despite $261 million flowing into the protocol since July 20, lifting TVL to $3.484 billion per DefiLlama, whale selling pressure could extend the decline unless positioning shifts.
The funding rate at -0.0101% marks one of the lowest readings of the year for ETHFI, a level last seen in April. A negative funding rate means short positions dominate the perpetual open interest — the leveraged capital sitting in the asset. More than half of the $57.33 million in contract value now bets on capturing gains from a falling price.
CoinGlass liquidation data over the past 24 hours shows short traders lost 22 times less than longs. Liquidations wiped out roughly $342,009 in long positions against $15,480 in shorts over the same window.
The whale-retail delta, which tracks the split between large holders and retail investors, puts whales in the driver's seat. Whales are showing outflows, raising the odds ETHFI declines further, since this group tends to commit to a path until something forces a change. They've already dominated retail investors for most of the year, feeding the asset's underwhelming performance.
Spot netflow points to heavier selling across multiple windows. Over the last 30 days, the netflow hit $2.2 million, and on shorter frames, the 7-day and 3-day readings reached roughly $205,000 and $271,000 at the time of writing.
Meanwhile, capital keeps flowing strongly on the on-chain side of Ether.fi, the liquid restaking protocol on Ethereum. DefiLlama reports $261 million worth of the asset flowed into the protocol from July 20 to date, lifting TVL to around $3.484 billion. A surge like this often hints at long-term commitment, likely from retail and mid-sized investors. For now, whale presence could stand as a key hindrance to the long-term ETHFI rebound retail investors are setting up.
Over the last 90 days, ETHFI dropped 17%, and on a one-year basis, it sits down 65%. The trend isn't typical — the recent slide arrives alongside solid on-chain performance tied to capital flow, yet price remains structurally weak. For the broader liquid restaking sector, ETHFI's divergence between on-chain inflows and price action could weigh on investor confidence in governance tokens tied to DeFi protocols, even as TVL continues to climb.
This article is for informational purposes only and does not constitute investment advice.
