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
Huobi Futures ETH_CQ -0.719 0.01 111,696,480 527,492,122 24/9/2021
OKEx (Futures) ETH-USD-210924 -0.628 0.01 141,686,610 338,439,125 24/9/2021
Binance (Futures) ETHUSD_210924 -0.683 0.01 112,677,240 280,714,974 24/9/2021
OKEx (Futures) ETH-USDT-210924 -0.886 0.03 2,666,850 260,939,404 24/9/2021
OKEx (Futures) ETH-USD-210730 -0.022 0.02 20,751,960 164,791,299 30/7/2021
Huobi Futures ETH_NQ -2.452 0.02 106,361,280 137,579,342 24/9/2021
OKEx (Futures) ETH-USDT-211231 -2.928 0.01 1,153,080 132,264,353 31/12/2021
OKEx (Futures) ETH-USD-210806 -0.024 0.03 11,083,450 119,089,326 6/8/2021
OKEx (Futures) ETH-USD-211231 -2.910 0.04 42,099,570 107,316,918 31/12/2021
Binance (Futures) ETHUSD_211231 -2.925 0.01 30,497,740 98,546,772 31/12/2021
OKEx (Futures) ETH-USDT-210730 0.066 0.10 400,630 97,615,010 30/7/2021
OKEx (Futures) ETH-USDT-210806 0.026 0.06 305,570 64,975,869 6/8/2021
Huobi Futures ETH_CW 0.002 0.01 16,248,170 57,325,171 30/7/2021
Huobi Futures ETH_NW 0.023 0.02 5,536,420 27,762,064 30/7/2021
FTX (Derivatives) ETH-0924 -1.182 0.06 189,373,235 25,918,335 24/9/2021
Huobi Futures ETH_NW 0.068 0.04 5,629,670 22,986,189 6/8/2021
FTX (Derivatives) ETH-1231 -3.271 0.04 64,188,128 20,486,858 31/12/2021
Deribit ETH-24SEP21 -0.724 0.09 78,709,168 17,505,801 24/9/2021
Deribit ETH-30JUL21 -0.123 0.08 21,175,059 9,673,863 30/7/2021
Bybit ETHUSDU21 -0.694 0.02 0 5,976,043 24/9/2021
Bybit ETHUSDZ21 -2.912 0.01 0 5,784,341 31/12/2021
Deribit ETH-6AUG21 0.667 0.10 0 3,990,097 6/8/2021
Deribit ETH-31DEC21 -2.909 0.08 70,178,861 3,827,980 31/12/2021
Deribit ETH-25MAR22 -4.691 0.14 38,491,076 2,366,201 25/3/2022
Deribit ETH-27AUG21 0.417 0.11 2,833,285 679,368 27/8/2021
Deribit ETH-24JUN22 -6.107 0.22 7,724,968 341,213 24/6/2022

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
MXC (Futures) ETH_USDT -0.003 0.02 0.00827 985,385,032 150,738,726
MEXC Global (Futures) ETH_USDT 0.017 0.03 0.00640 864,810,961 115,725,885
Binance (Futures) ETHUSDT 0.028 0.01 0.00553 832,188,926 7,652,608,065
Bitfinex (Futures) ETHF0:USTF0 0.052 0.01 0.00000 641,968,745 38,076,766
FTX (Derivatives) ETH-PERP -0.021 0.02 0.00240 593,216,195 1,244,753,246
C-Trade ETHUSD -0.152 0.01 -0.17638 435,663,717 29,147,863
Hopex ETHUSDT 0.008 0.00 0.00000 383,461,714 1,546,755,496
Bybit ETHUSD 0.046 0.01 0.00730 343,629,664 1,396,075,584
Huobi Futures ETH-USD 0.017 0.01 -0.02261 297,411,790 752,473,556
Binance (Futures) ETHUSD_PERP 0.014 0.01 0.00443 247,419,590 2,998,447,096
Bitfinex (Futures) TETHF0:USTF0 0.808 0.21 -0.25000 217,744,062 18,656,998
Huobi Futures ETH-USDT 0.063 0.01 -0.01922 201,491,522 2,486,335,236
Phemex (Futures) ETHUSD 0.027 0.01 0.00957 193,794,155 38,015,698
MXC (Futures) ETH_USD 0.136 0.02 0.02000 179,583,950 6,033
Deribit ETH-PERPETUAL -0.022 0.01 -0.00090 174,583,836 294,163,554
MEXC Global (Futures) ETH_USD 0.015 0.02 0.00020 166,817,850 6,332
OKEx (Futures) ETH-USDT-SWAP 0.051 0.01 -0.01254 148,610,153 2,466,510,207
BitMEX ETHUSD -0.140 0.01 0.01000 144,679,210 263,956,855
Bybit ETHUSDT 0.049 0.01 0.01000 123,521,955 541,758,267
MyCoinStory ETHUSDT_QUANTO_PERP -0.094 0.00 0.01989 108,653,252 2,024,852
OKEx (Futures) ETH-USD-SWAP -0.036 0.01 -0.01020 107,777,390 384,940,640
Bitget Futures CMT_ETHUSDT 0.004 0.02 -0.02000 96,592,790 552,915,999
BitZ (Futures) 102 0.039 0.12 0.00000 94,644,211 283,991,832
Kraken (Futures) PI_ETHUSD 0.113 0.03 0.00418 73,797,427 141,831,918
ZBG Futures ETH_USDT -0.079 0.03 0.01000 63,887,363 7,300,435
Prime XBT ETH/USD 0.000 0.04 0.00000 53,352,810 195,969,825
Perpetual protocol ETH_USDC 0.000 0.00 -0.00860 24,430,128 13,753,042
BTSE (Futures) ETHPFC -0.093 0.02 0.00000 24,275,064 83,431,636
BitZ (Futures) ETH_USDT 0.016 0.10 0.00000 22,988,878 204,994,849
Bitforex (Futures) SWAP-USD-ETH -0.007 0.02 -0.00200 16,173,675 14,969,961
dYdX Perpetual ETH-USD 0.612 0.01 0.00822 14,477,865 19,758,765
BitZ (Futures) ETH_USDT_BZ -0.025 0.19 0.00000 12,543,131 1,631,389,199
Prime XBT ETH/BTC 0.000 0.17 0.00000 8,462,261 5,065,001
Bitget Futures ETHUSD 0.021 0.01 0.01000 6,431,180 18,061,420
Phemex ETHUSD -0.173 0.11 0.07048 6,296,398 27,182,027
BitZ (Futures) 2 0.002 0.11 0.00000 2,457,740 37,688,760
Poloniex Futures ETHUSDTPERP 0.048 0.09 0.00000 1,394,575 1,709,498
AAX Futures ETHUSDTFP -0.336 0.06 -0.02025 1,205,587 4,794,229
Hopex ETHUSD -0.016 0.00 0.00000 1,160,940 22,038
BitZ (Futures) ETH_USD -0.090 0.14 0.00000 1,155,373 15,247,458
Gate.io (Futures) ETH_USD -0.293 0.00 0.02060 985,348 2,492,316
BitZ (Futures) 202 0.056 0.14 0.00000 947,450 151,945,180
CoinFLEX (Futures) ETH-USD-SWAP-LIN 0.000 0.01 -0.00050 649,736 14,981,879
AscendEX (BitMax) (Futures) ETH-PERP 0.055 0.00 0.00464 544,254 1,332,710
ACDX Futures ETH-PERP 0.058 0.06 0.00000 542,130 21,480,587
BigONE Futures ETHUSDT -0.100 0.07 0.01000 410,753 392,871,243
BaseFEX ETHUSDT 0.193 0.11 0.01000 293,344 2,867,590
BigONE Futures ETHUSD -0.067 0.07 0.01000 206,237 14,589,629
Bit.com ETH-PERPETUAL -0.127 0.02 0.00000 128,347 1,915,129
BaseFEX ETHXBT -1.643 3.08 0.01000 80,183 789,729
Binance (Futures) ETHBUSD 0.055 0.01 0.00722 7,488 209,558,620
AAX Futures ETHUSDFP -0.423 0.03 0.01051 212 203
Alpha5 ETHUSDT 0.530 0.20 -0.00286 2 212
CoinTiger (Futures) ETHUSDT 0.087 0.01 0.00553 0 765,119,389
Gate.io (Futures) ETH_USDT 0.066 0.00 0.00760 0 692,383,904
Bitget Futures CMT_ETHSUSDT 0.010 0.13 0.01267 0 226,666,164
Biki (Futures) 4 -4.599 0.02 -0.03451 0 208,609,701
BTCMEX ETHUSDT 0.055 0.00 0.01000 0 43,663,073
BHEX (Futures) ETH-SWAP 0.002 0.01 0.01241 0 26,753,747
ZBG Futures ETH_USD-R -0.026 0.02 0.01000 0 21,907,850
Stormgain Futures ETH-PERPUSDT 0.000 0.11 0.00400 0 21,261,887
Binance (Futures) ETHUSDT_210326 -5.274 0.25 0.00000 0 17,670,699
GMO Japan (Futures) ETH_JPY 0.000 0.10 0.00000 0 10,278,773
Bibox (Futures) 4ETH_USDT 0.000 0.36 0.00000 0 6,375,671
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 Exchange (Futures) ETHUSD-PERP -0.046 0.03 0.00000 0 3,704,702
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
Bitfinex (Futures) ETHF0:BTCF0 0.054 0.03 -0.01183 0 2,284,096
BHEX (Futures) ETH-SWAP-USDT -0.007 0.02 0.01732 0 1,872,775
Delta Exchange ETHBTC -0.223 0.02 0.01000 0 1,295,656
Bitfinex (Futures) TETHF0:BTCF0 0.559 0.11 -0.25000 0 779,083
HBTC (Futures) ETH-SWAP-USDT 0.069 1.73 0.05189 0 663,148
MCDEX RQBAP 0.112 0.18 0.03741 0 449,127
MCDEX ETH-PERP -6.764 0.29 -0.03509 0 110,000
Crypto.com Exchange (Futures) ETHUSD-210924 0.000 0.22 0.00000 0 69,737
Crypto.com Exchange (Futures) ETHUSD-211231 0.000 0.23 0.00000 0 19,341
Stormgain Futures ETH-PERPBTC 0.000 0.30 0.00400 0 5,414
DueDEX ETHUSDT -0.979 0.00 0.01000 0 636
Futureswap ETH-USD 0.959 0.00 0.00000 0 231
Binance JEX (Futures) ETHUSDT 4.412 0.35 0.01000 0 22
Biki (Futures) 5 -0.187 0.11 0.00526 0 2
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-0924 0.615 0.26 4,271,398 14,779 24/9/2021

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 0.025 0.11 0.01200 17,637,837 9,517,493
Gate.io (Futures) ALT_USDT -1.899 0.00 0.01000 37 5,369
BTSE (Futures) BBAXPFC 0.312 0.35 0.00000 0 140,088
BTSE (Futures) BBCXPFC 0.015 0.75 0.00000 0 76,698

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 0.017 0.01 0.00000 952,396 230,470
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
BTSE (Futures) BDIPFC 0.105 0.29 0.00000 4,436 46,594
Binance (Futures) BTCDOMUSDT 0.159 0.02 -0.08084 2,074 5,722,329

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.