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
Binance (Futures) ETHUSD_211231 -3.168 0.01 274,555,060 460,640,297 31/12/2021
OKEx (Futures) ETH-USD-211231 -2.882 0.01 295,966,440 412,366,298 31/12/2021
Huobi Futures ETH_CQ -0.732 0.01 166,135,870 238,443,940 31/12/2021
OKEx (Futures) ETH-USDT-211231 -2.918 0.02 1,754,130 175,085,353 31/12/2021
OKEx (Futures) ETH-USDT-220325 -6.439 0.03 1,013,240 107,963,796 25/3/2022
OKEx (Futures) ETH-USD-211029 -0.587 0.02 4,268,930 105,096,182 29/10/2021
OKEx (Futures) ETH-USD-211022 -0.127 0.01 17,576,460 102,837,053 22/10/2021
Binance (Futures) ETHUSD_220325 -6.412 0.01 64,597,810 94,437,033 25/3/2022
OKEx (Futures) ETH-USD-220325 -6.378 0.02 79,722,590 91,690,040 25/3/2022
OKEx (Futures) ETH-USDT-211022 -0.215 0.03 150,570 57,702,839 22/10/2021
OKEx (Futures) ETH-USDT-211029 -0.504 0.05 150,010 55,943,382 29/10/2021
FTX (Derivatives) ETH-1231 -2.925 0.03 218,275,544 42,352,767 31/12/2021
Bybit ETHUSDZ21 -3.261 0.01 0 31,119,340 31/12/2021
Deribit ETH-31DEC21 -2.744 0.05 88,139,245 19,292,134 31/12/2021
FTX (Derivatives) ETH-0325 -7.087 0.05 206,526,908 19,015,348 25/3/2022
Deribit ETH-26NOV21 -2.003 0.08 6,477,331 5,487,858 26/11/2021
Deribit ETH-25MAR22 -6.054 0.08 68,142,358 4,944,798 25/3/2022
Deribit ETH-22OCT21 -0.229 0.02 0 4,896,565 22/10/2021
Deribit ETH-29OCT21 -0.644 0.05 14,216,912 3,718,336 29/10/2021
Huobi Futures ETH_NQ -1.142 0.07 3,794,330 1,808,678 25/3/2022
Deribit ETH-24JUN22 -8.640 0.07 20,321,911 1,619,474 24/6/2022
Deribit ETH-30SEP22 -11.347 0.11 6,026,884 1,423,084 30/9/2022

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 -0.092 0.01 0.03324 1,416,598,344 5,394,705,180
Bitfinex (Futures) ETHF0:USTF0 -0.047 0.01 0.00000 1,289,354,397 24,369,480
FTX (Derivatives) ETH-PERP 0.016 0.01 0.09600 1,287,087,207 1,471,218,496
MXC (Futures) ETH_USDT -0.003 0.02 0.00827 985,385,032 150,738,726
Bybit ETHUSD -0.142 0.01 0.09270 712,191,175 1,165,917,328
Binance (Futures) ETHUSD_PERP -0.080 0.01 0.02213 540,718,490 2,710,564,019
Phemex (Futures) ETHUSD -0.118 0.01 0.10019 481,781,119 9,250,449
dYdX Perpetual ETH-USD -0.001 0.01 0.01067 481,470,966 1,025,632,390
Hopex ETHUSDT 0.008 0.00 0.00000 383,461,714 1,546,755,496
Huobi Futures ETH-USD -0.007 0.01 0.01000 350,600,910 576,115,463
OKEx (Futures) ETH-USDT-SWAP 0.049 0.01 0.01256 309,503,669 2,410,185,926
MEXC Global (Futures) ETH_USDT -0.016 0.02 0.00590 270,070,082 182,652,601
Bybit ETHUSDT -0.130 0.01 0.08880 243,983,459 434,183,214
BitMEX ETHUSD -0.082 0.01 0.05070 239,410,429 267,441,699
OKEx (Futures) ETH-USD-SWAP 0.032 0.01 0.01662 222,453,090 391,763,431
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
Deribit ETH-PERPETUAL -0.091 0.02 0.03970 197,611,493 187,166,299
MXC (Futures) ETH_USD 0.136 0.02 0.02000 179,583,950 6,033
Huobi Futures ETH-USDT -0.054 0.01 0.04420 178,694,272 1,094,534,466
Bitget Futures CMT_ETHUSDT -0.001 0.01 0.00041 139,311,491 384,240,950
ZBG Futures ETH_USDT -0.004 0.01 0.01000 119,336,274 3,315,488
Prime XBT ETH/USD 0.000 0.03 0.00000 107,971,577 113,824,252
BitZ (Futures) 102 0.039 0.12 0.00000 94,644,211 283,991,832
Kraken (Futures) PI_ETHUSD -0.029 0.01 0.01425 64,312,137 62,981,195
Bitforex (Futures) SWAP-USD-ETH -0.130 0.01 0.01600 64,058,919 428,010,601
Perpetual protocol ETH_USDC 0.000 0.00 0.00112 48,298,831 5,145,806
CoinFLEX (Futures) ETH-USD-SWAP-LIN -0.010 0.01 0.00220 34,978,927 641,342,436
BTSE (Futures) ETHPFC -0.057 0.01 0.00000 33,821,483 170,139,446
MEXC Global (Futures) ETH_USD -0.016 0.06 0.02920 23,521,500 1,532
BitZ (Futures) ETH_USDT_BZ 0.090 0.14 0.00000 21,528,099 1,004,554,589
AAX Futures ETHUSDTFP 1.969 0.02 0.04816 20,978,674 98,646,769
Prime XBT ETH/BTC 0.000 0.16 0.00000 19,884,390 5,524,493
C-Trade ETHUSDT -0.084 0.01 0.06000 19,484,997 9,397,368
AscendEX (BitMax) (Futures) ETH-PERP -0.240 0.00 0.04898 12,216,042 3,233,061
Bitget Futures ETHUSD -0.004 0.01 0.01099 12,134,676 21,062,765
C-Trade ETHUSD -0.110 0.01 0.10655 10,440,142 2,828,317
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 -0.209 0.13 0.02050 1,457,851 1,883,363
Hopex ETHUSD -0.016 0.00 0.00000 1,160,940 22,038
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
Gate.io (Futures) ETH_USD -0.245 0.00 0.11600 930,361 1,257,250
ACDX Futures ETH-PERP -0.016 0.06 0.00000 883,539 40,359,705
BigONE Futures ETHUSDT 0.009 0.03 0.01000 864,238 431,364,237
BaseFEX ETHUSDT 0.193 0.11 0.01000 293,344 2,867,590
BigONE Futures ETHUSD -0.107 0.04 0.03706 172,858 22,986,152
Bit.com ETH-PERPETUAL -0.092 0.01 0.00000 92,919 1,060,702
BaseFEX ETHXBT -1.643 3.08 0.01000 80,183 789,729
BitZ (Futures) ETH_USD -0.001 0.10 0.00000 52,056 304,510
Binance (Futures) ETHBUSD -0.112 0.01 0.02744 41,017 632,868,219
AAX Futures ETHUSDFP -0.423 0.03 0.01051 212 203
Gate.io (Futures) ETH_USDT -0.061 0.00 0.04010 0 648,351,118
CoinTiger (Futures) ETHUSDT -0.098 0.01 0.03324 0 538,525,912
Biki (Futures) 4 -4.599 0.02 -0.03451 0 208,609,701
Bitget Futures CMT_ETHSUSDT 0.001 0.12 -0.00242 0 174,927,561
Crypto.com Exchange (Futures) ETHUSD-PERP -0.055 0.03 0.00003 0 125,377,287
BTCMEX ETHUSDT 0.055 0.00 0.01000 0 43,663,073
Stormgain Futures ETH-PERPUSDT 0.000 0.11 0.00400 0 24,153,145
Binance (Futures) ETHUSDT_210326 -5.274 0.25 0.00000 0 17,670,699
GMO Japan (Futures) ETH_JPY 0.000 0.12 0.00000 0 11,612,291
ZBG Futures ETH_USD-R -0.025 0.01 0.04173 0 8,221,476
Bibox (Futures) 4ETH_USDT 0.000 0.01 0.00000 0 6,673,435
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
EQONEX (Perpetual) 29 0.254 0.07 2.94091 0 3,119,834
ZBG Futures ETH_USD-R20190927 0.000 0.19 0.00000 0 2,922,578
Bitfinex (Futures) ETHF0:BTCF0 -0.030 0.02 0.00000 0 1,894,087
MCDEX 00001 0.000 0.00 0.00000 0 1,362,665
Delta Exchange ETHBTC -0.223 0.02 0.01000 0 1,295,656
Crypto.com Exchange (Futures) ETHUSD-211231 -3.062 0.13 0.00000 0 988,711
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
Crypto.com Exchange (Futures) ETHUSD-210924 0.035 0.08 0.00000 0 391,068
BHEX (Futures) ETH-SWAP -0.012 0.03 0.03051 0 179,322
MCDEX ETH-PERP -6.764 0.29 -0.03509 0 110,000
Crypto.com Exchange (Futures) ETHUSD-220325 -6.392 0.13 0.00000 0 70,294
BHEX (Futures) ETH-SWAP-USDT -0.026 0.15 -0.00061 0 58,943
Stormgain Futures ETH-PERPBTC 0.000 0.29 0.00400 0 37,197
Alpha5 ETHUSDT -4.824 0.20 -0.00077 0 11,274
Binance JEX (Futures) ETHUSDT 1.791 0.21 0.01000 0 11,130
DueDEX ETHUSDT -0.979 0.00 0.01000 0 636
Futureswap ETH-USD 0.959 0.00 0.00000 0 231
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
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-1231 -1.693 0.23 5,429,180 5,984,473 31/12/2021

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 0.02 -0.01200 31,813,602 35,408,971
Gate.io (Futures) ALT_USDT -3.356 0.00 0.01000 49 114,149
BTSE (Futures) BBAXPFC -1.576 0.41 0.00000 0 147,887
BTSE (Futures) BBCXPFC 0.475 0.74 0.00000 0 57,311

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 -0.025 0.05 0.00000 960,225 83,162
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT -0.008 0.02 0.01000 4,820 9,437,558
BTSE (Futures) BDIPFC -0.095 0.28 0.00000 4,178 17,889

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.