How to hedge Ethereum

ETH is Ethereum token.

As ETH is a volatile asset, in certain instances it will require hedging.

The best method of hedging ETH is to use crypto derivatives.
There are multiple of the exchanges serving futures and perpetual swaps.

Choose from the list of hedging options

Ethereum Futures

When required to hedge the position for the mid-term period (weeks to months) you can use futures.

Exchange Symbol Premium (-)
Discount (+)
Spread Open Intrest 24h Volume Expiry Date
BTCC Futures ETH-WEEKLY -0.162 0.30 491,519,987 1,000,363,747 1/7/2022
BTCC Futures ETH-DAILY -0.072 0.30 188,644,425 383,898,890 27/6/2022
Binance (Futures) ETHUSD_220930 -0.165 0.01 61,648,370 96,995,667 30/9/2022
Huobi Futures ETH_CQ 0.066 0.03 10,114,800 37,508,642 30/9/2022
FTX (Derivatives) ETH-0930 0.284 0.03 185,287,759 32,694,277 30/9/2022
Binance (Futures) ETHUSD_221230 -1.094 0.01 9,845,360 30,362,444 30/12/2022
OKX (Futures) ETH-USD-220701 -0.006 0.05 16,416,330 23,985,669 1/7/2022
OKX (Futures) ETH-USD-221230 -0.706 0.03 62,588,380 21,891,011 30/12/2022
OKX (Futures) ETH-USDT-220701 -0.025 0.02 560,080 16,358,017 1/7/2022
OKX (Futures) ETH-USDT-221230 -0.868 0.04 1,472,460 14,936,899 30/12/2022
Huobi Futures ETH_CW 0.017 0.06 3,363,080 13,882,781 1/7/2022
Huobi Futures ETH_NW 0.119 0.14 2,988,930 13,221,070 1/7/2022
OKX (Futures) ETH-USDT-220708 -0.072 0.07 463,000 8,323,898 8/7/2022
Huobi Futures ETH_NW 0.041 0.08 1,651,960 7,598,423 8/7/2022
OKX (Futures) ETH-USD-220708 -0.165 0.07 5,910,540 6,393,970 8/7/2022
Deribit ETH-30SEP22 0.196 0.05 55,167,239 4,269,146 30/9/2022
Deribit ETH-30DEC22 -0.432 0.08 27,880,242 3,752,142 30/12/2022
Deribit ETH-30JUN23 -1.528 0.06 2,045,735 3,560,412 30/6/2023
Huobi Futures ETH_NQ -0.816 0.03 7,872,120 3,494,605 30/9/2022
Deribit ETH-1JUL22 0.226 0.08 4,122,323 2,003,105 1/7/2022
FTX (Derivatives) ETH-1230 -0.568 0.23 13,660,792 1,939,358 30/12/2022
Deribit ETH-31MAR23 -0.787 0.17 23,317,573 1,000,065 31/3/2023
Deribit ETH-8JUL22 0.444 0.08 1,063,841 577,118 8/7/2022
Deribit ETH-26AUG22 0.322 0.11 367,096 500,414 26/8/2022
Deribit ETH-29JUL22 0.222 0.13 17,174,472 241,499 29/7/2022

Ethereum Perpetual Swaps

Short position for indefinite time is also possible by using perpetual.
Moreover you can earn swaps in particular cases.

Exchange Symbol Premium (-)
Discount (+)
Spread Funding Rate Open Intrest 24h Volume
Binance (Futures) ETHUSDT 0.056 0.01 -0.01017 1,068,576,293 5,495,952,134
MXC (Futures) ETH_USDT -0.003 0.02 0.00827 985,385,032 150,738,726
MEXC Global (Futures) ETH_USDT 0.075 0.01 -0.01510 786,429,274 1,605,038,785
FTX (Derivatives) ETH-PERP 0.015 0.02 -0.02400 733,685,673 1,539,633,275
AAX Futures ETHUSDTFP -0.029 0.03 -0.01006 393,868,479 568,911,442
Gate.io (Futures) ETH_USDT 0.148 0.02 0.00140 385,740,529 1,038,375,004
Phemex (Futures) ETHUSD 0.107 0.01 -0.00737 303,069,099 453,049,911
OKEx (Futures) ETH-USDT-SWAP -0.055 0.01 0.01217 254,856,013 6,288,747,772
Bybit ETHUSD 0.062 0.01 -0.00370 239,411,000 303,767,935
Bybit ETHUSDT 0.082 0.01 -0.01580 238,689,704 1,105,305,730
Bitfinex (Futures) TETHF0:USTF0 0.808 0.21 -0.25000 217,744,062 18,656,998
MyCoinStory ETHUSDT_QUANTO_PERP -0.157 0.00 0.04260 211,528,234 2,231,119
Prime XBT ETH/USD 0.000 0.08 0.00000 211,238,200 74,084,342
Deribit ETH-PERPETUAL 0.121 0.01 -0.00230 209,130,154 112,719,106
MXC (Futures) ETH_USD 0.136 0.02 0.02000 179,583,950 6,033
Binance (Futures) ETHUSD_PERP 0.064 0.01 -0.01390 169,512,760 1,362,015,392
OKEx (Futures) ETH-USD-SWAP -0.031 0.01 -0.02141 151,636,920 546,197,796
BTCC Futures ETHUSDT -0.168 0.30 0.00000 148,476,842 302,224,697
BTCEX (Futures) ETH-30SEP22 -0.004 0.04 -0.01400 148,232,852 66,307,663
BTCEX (Futures) ETH-24JUN22 0.369 0.04 0.01000 140,877,096 66,467,431
C-Trade ETHUSD -0.326 0.05 -0.07012 138,927,066 15,457,875
BitMEX ETHUSD -0.105 0.01 0.08720 115,519,960 70,990,951
dYdX Perpetual ETH-USD 0.302 0.02 -0.00027 108,166,026 197,157,330
BitZ (Futures) 102 0.039 0.12 0.00000 94,644,211 283,991,832
Bitfinex (Futures) ETHF0:USTF0 -0.023 0.02 0.00000 82,080,716 22,745,175
ZBG Futures ETH_USDT 0.057 0.03 -0.01359 80,311,005 532,873
MCS ETHUSDT_QUANTO_PERP -0.446 0.07 0.01000 65,367,972 604,755
Hopex ETHUSDT 0.044 0.00 0.00000 62,670,485 697,053,189
Bitget Futures CMT_ETHUSDT 0.011 0.01 0.00022 55,647,764 238,318,674
Huobi Futures ETH-USDT 0.074 0.01 -0.01496 51,867,709 183,223,971
Crypto.com Exchange (Futures) ETHUSD-PERP 0.091 0.07 -0.00002 49,291,231 49,291,231
C-Trade ETHUSDT -0.167 0.01 0.00000 42,225,673 592,894
Bitrue (Futures) ETH-USDT 0.042 0.01 -0.01231 40,185,848 212,188,643
Huobi Futures ETH-USD 0.089 0.01 -0.02108 34,334,460 69,570,614
Prime XBT ETH/BTC 0.000 0.17 0.00000 28,049,400 163,358
BitZ (Futures) ETH_USDT_BZ 0.090 0.14 0.00000 21,528,099 1,004,554,589
BTSE (Futures) ETHPFC 0.279 0.08 0.00000 21,139,174 52,666,714
Perpetual protocol ETH_USDC 0.000 0.00 -0.02000 17,280,873 0
Kraken (Futures) PI_ETHUSD 0.017 0.10 -0.03400 13,954,916 31,748,139
Bitforex (Futures) SWAP-USD-ETH 0.149 0.01 0.01254 7,118,527 570,135,880
ZB (Derivatives) ETH_USDT 0.135 0.07 0.01000 6,816,073 674,121,495
CoinFLEX (Futures) ETH-USD-SWAP-LIN 0.000 0.02 -0.00080 6,507,097 1,329,106
Phemex ETHUSD -0.173 0.11 0.07048 6,296,398 27,182,027
ZB (Derivatives) ETH_QC 0.132 0.05 0.01000 5,979,916 12,277,341
Deribit ETH_USDC-PERPETUAL 0.198 0.06 -0.00460 4,594,528 4,447,184
BitZ (Futures) 2 0.002 0.11 0.00000 2,457,740 37,688,760
AscendEX (BitMax) (Futures) ETH-PERP 0.095 0.00 -0.00861 2,067,011 425,747
Bitget Futures ETHUSD 0.012 0.01 0.00828 1,739,689 3,036,942
CoinEx (Futures) ETH-USDT 0.018 0.01 -0.04549 1,738,399 42,977,854
Drift Protocol ETH-PERP 0.000 0.00 0.12676 1,550,034 0
MEXC Global (Futures) ETH_USD 0.156 0.01 -0.02900 1,331,690 1,044,353
WOO Network (Futures) PERP_ETH_USDT -0.006 0.01 -0.00061 1,127,020 17,004,595
Poloniex Futures ETHUSDTPERP -0.019 0.10 0.00000 1,088,924 1,630,132
BitZ (Futures) ETH_USDT -0.001 0.02 0.00000 953,638 4,506,852
BitZ (Futures) 202 0.056 0.14 0.00000 947,450 151,945,180
Bit.com ETH-PERPETUAL -0.066 0.01 0.00000 816,811 2,844,145
Bit.com (Futures) ETH-PERPETUAL 0.002 0.02 0.00000 505,443 839,607
Hopex ETHUSD -0.038 0.00 0.00000 498,040 34,956
Gate.io (Futures) ETH_USD -0.338 0.20 0.01000 302,035 797,995
BaseFEX ETHUSDT 0.193 0.11 0.01000 293,344 2,867,590
Crypto.com Exchange (Futures) ETHUSD-220325 0.085 0.09 0.00000 200,695 187,350
BigONE Futures ETHUSDT 0.111 0.08 0.01000 182,950 200,345,944
Crypto.com Exchange (Futures) ETHUSD-220624 -0.045 0.06 0.00000 157,161 1,840,104
Binance (Futures) ETHBUSD 0.064 0.01 -0.00986 137,925 822,128,668
CoinEx (Futures) ETH-USD 0.047 0.16 -0.05532 123,619 3,170,423
BigONE Futures ETHUSD 0.018 0.08 0.01000 116,133 13,443,271
BaseFEX ETHXBT -1.643 3.08 0.01000 80,183 789,729
Crypto.com Exchange (Futures) ETHUSD-220930 -1.053 0.04 0.00000 67,170 47,348
Crypto.com Exchange (Futures) ETHUSD-220225 0.009 0.19 0.00000 63,690 59,868
BitZ (Futures) ETH_USD -0.001 0.10 0.00000 52,056 304,510
Crypto.com Exchange (Futures) ETHUSD-211231 0.018 0.04 0.00000 42,287 15,009
MCDEX (Arbitrum) ETH-USDC 3.550 0.60 -0.00038 34,685 35,922
MCDEX (BSC) ETH-BUSD 0.000 0.71 0.00360 27,292 10,372
Crypto.com Exchange (Futures) ETHUSD-220429 -0.029 0.10 0.00000 3,827 3,911
Crypto.com Exchange (Futures) ETHUSD-220128 0.118 0.20 0.00000 3,821 4,219
Crypto.com Exchange (Futures) ETHUSD-220729 -0.410 0.09 0.00000 2,159 1,398
Crypto.com Exchange (Futures) ETHUSD-220527 -0.147 0.07 0.00000 2,152 1,851
ACDX Futures ETH-PERP -4.708 0.06 0.00000 705 355,876
AAX Futures ETHUSDFP -0.423 0.03 0.01051 212 203
MCDEX (BSC) USD-ETH -6.344 0.02 0.00024 80 0
Bit.com (Futures) ETH-USDT-PERPETUAL -0.083 0.10 0.00000 30 97,820
BTCEX (Futures) ETH-USDT-PERPETUAL -0.003 0.01 -0.01400 0 1,206,090,573
CoinTiger (Futures) ETHUSDT 0.134 0.01 -0.01001 0 548,684,732
Biki (Futures) 4 -4.599 0.02 -0.03451 0 208,609,701
BTCEX (Futures) ETH-25MAR22 -0.282 0.02 0.01000 0 117,199,246
Bitget Futures CMT_ETHSUSDT 0.034 0.12 -0.00016 0 116,738,791
BTCMEX ETHUSDT 0.055 0.00 0.01000 0 43,663,073
Injective Exchange (Futures) ETH/USDT PERP -3.321 0.09 0.00000 0 31,952,646
GMO Japan (Futures) ETH_JPY 0.000 0.06 0.00000 0 20,425,252
Binance (Futures) ETHUSDT_210326 -5.274 0.25 0.00000 0 17,670,699
Stormgain Futures ETH-PERPUSDT 0.000 0.11 0.00400 0 11,371,438
HBTC (Futures) ETH-SWAP 0.457 0.10 -0.03984 0 5,631,154
Delta Exchange ETHUSDT -0.228 0.01 0.08250 0 4,483,123
Crypto.com (Futures) ETHUSD-PERP 0.000 0.05 0.00000 0 3,644,318
ZBG Futures ETH_USD-R20190927 0.000 0.19 0.00000 0 2,922,578
Bibox (Futures) 4ETH_USDT 0.000 0.02 0.00000 0 2,128,328
MCDEX 00001 0.000 0.00 0.00000 0 1,822,608
Delta Exchange ETHBTC -0.223 0.02 0.01000 0 1,295,656
Bitfinex (Futures) ETHF0:BTCF0 -0.087 0.06 0.00000 0 1,178,771
Bitfinex (Futures) TETHF0:BTCF0 0.559 0.11 -0.25000 0 779,083
EQONEX (Perpetual) 29 -1.306 0.09 -1.41364 0 689,893
HBTC (Futures) ETH-SWAP-USDT 0.069 1.73 0.05189 0 663,148
MCDEX ETH-USDC 0.000 0.24 0.15450 0 502,913
Injective Pro (Futures) ETH/USDT PERP -1.012 0.08 -0.00280 0 487,559
MCDEX RQBAP 0.112 0.18 0.03741 0 449,127
Crypto.com Exchange (Futures) ETHUSD-210924 0.035 0.08 0.00000 0 391,068
MCDEX ETH-PERP -6.764 0.29 -0.03509 0 110,000
ZBG Futures ETH_USD-R 0.126 0.01 -0.03722 0 97,824
BHEX (Futures) ETH-SWAP-USDT -0.026 0.15 -0.00061 0 42,901
BHEX (Futures) ETH-SWAP -0.012 0.03 0.03051 0 38,643
Crypto.com Exchange (Futures) ETHUSD-211126 0.037 0.09 0.00000 0 37,403
Bitfinex (Futures) ETHF0:EUTF0 0.105 0.84 0.03696 0 35,562
Alpha5 ETHUSDT -4.824 0.20 -0.00077 0 11,274
Binance JEX (Futures) ETHUSDT 1.791 0.21 0.01000 0 11,130
Stormgain Futures ETH-PERPBTC 0.000 0.32 0.00400 0 1,115
DueDEX ETHUSDT -0.979 0.00 0.01000 0 636
Futureswap ETH-USD 0.959 0.00 0.00000 0 231
MCDEX (BSC) ETH-USX 0.000 0.00 0.00000 0 170
MCDEX 10017 0.000 0.00 0.00000 0 8
Biki (Futures) 5 -0.187 0.11 0.00526 0 2
MCDEX 10015 0.000 0.00 0.00000 0 0
Powertrade (Derivatives) ETH-USD-PERPETUAL 0.782 0.00 174,247.00000 0 0
Stormgain Futures ETH-PERPUSDC NaN 0.19 0.00400 0 0
Stormgain Futures ETH-PERPDAI NaN 0.11 0.00400 0 0

Future Contracts on Indexes with Ethereum embeded

Another way of hedging positions for the mid-term is using future contracts on indexes with the asset price as a component of the the index.

Exchange Symbol Premium (-)
Discount (+)
Spread Open Intrest 24h Volume Expiry Date
FTX (Derivatives) ALT-0930 -0.005 0.17 695,881 17,036 30/9/2022

Perpetual Swaps on Indexes with Ethereum component

Sometime the best option to hedge Ethereum is to short with perpetual contract idefinitely.
Earning swaps can be in some cases crucial for the positioning.

Exchange Symbol Premium (-)
Discount (+)
Spread Funding Rate Open Intrest 24h Volume
FTX (Derivatives) ALT-PERP 0.065 0.10 -0.09840 9,766,478 3,855,773
Gate.io (Futures) ALT_USDT -3.160 2.63 0.36770 31,361 1,049
BTSE (Futures) BBAXPFC -0.277 0.41 0.00000 0 186,125
BTSE (Futures) BBCXPFC -1.309 0.59 0.00000 0 30,866

Other crypto related Indexes (Perpetual Swaps)

There are several specyfic cryptocurrencies market Indexes which can be considered as a hedge for the trading positions. As Bitcoin take the lion's share of the whole market capitalisation, BTC dominance is one of the most notable.
Even more than on other markets, Bitcoin volatility influences almost all the trading pairs traded with both BTC and altcoins at the same moment.

Exchange Symbol Premium (-)
Discount (+)
Spread Funding Rate Open Intrest 24h Volume
Bitfinex (Futures) BTCDOMF0:USTF0 0.020 0.10 0.00000 169,935 11,106
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT -0.026 0.01 0.06240 9,752 9,387,599
BTSE (Futures) BDIPFC -0.143 0.30 0.00000 2,482 41,193

Negative correlation with Ethereum

Check correlations with Ethereum or use a custom form to check ETH changes in correlation coefficient with other token.

Stable coins or non-crypto assets can also be considered for hedging positions.