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_220325 -0.498 0.01 147,920,870 660,762,556 25/3/2022
OKEx (Futures) ETH-USD-220325 -0.522 0.01 197,849,520 600,999,774 25/3/2022
OKEx (Futures) ETH-USDT-220325 -0.852 0.05 2,700,760 347,636,573 25/3/2022
Binance (Futures) ETHUSD_220624 -2.038 0.01 39,258,190 170,579,555 24/6/2022
Huobi Futures ETH_CQ -0.452 0.05 25,989,030 167,491,661 25/3/2022
FTX (Derivatives) ETH-0325 -0.568 0.10 196,951,989 147,058,565 25/3/2022
Deribit ETH-25MAR22 -0.558 0.11 100,912,775 102,491,094 25/3/2022
Deribit ETH-28JAN22 0.133 0.15 48,216,862 37,751,425 28/1/2022
FTX (Derivatives) ETH-0624 -2.156 0.13 48,879,888 24,978,367 24/6/2022
Deribit ETH-24JUN22 -2.024 0.18 30,846,027 23,224,479 24/6/2022
Deribit ETH-25FEB22 -0.162 0.16 20,459,639 10,512,497 25/2/2022
Deribit ETH-4FEB22 0.058 0.15 0 9,107,884 4/2/2022
Huobi Futures ETH_CW 0.058 0.12 2,803,450 8,536,556 28/1/2022
Huobi Futures ETH_NW 0.045 0.03 2,763,110 4,191,173 28/1/2022
Deribit ETH-30DEC22 -3.751 0.56 7,415,072 3,756,223 30/12/2022
Huobi Futures ETH_NW 0.142 0.31 717,830 3,381,876 4/2/2022
Deribit ETH-30SEP22 -3.527 0.07 29,331,517 2,817,128 30/9/2022
Huobi Futures ETH_NQ -3.923 0.11 7,162,610 2,037,037 25/3/2022
Huobi Futures ETH_NQ -2.198 0.34 3,388,110 1,866,638 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
Binance (Futures) ETHUSDT 0.011 0.02 0.00684 1,177,353,751 11,609,205,729
FTX (Derivatives) ETH-PERP -0.321 0.02 0.23760 1,052,248,408 5,597,784,896
MXC (Futures) ETH_USDT -0.003 0.02 0.00827 985,385,032 150,738,726
Bitfinex (Futures) ETHF0:USTF0 0.073 0.01 0.00000 870,724,158 170,744,180
Bybit ETHUSD 0.036 0.01 0.01000 415,448,691 1,528,879,894
Binance (Futures) ETHUSD_PERP 0.029 0.01 0.01000 385,488,540 8,340,715,029
Crypto.com Exchange (Futures) ETHUSD-PERP 0.004 0.10 0.00000 344,214,601 344,214,601
Deribit ETH-PERPETUAL -0.064 0.05 0.00430 325,401,597 916,747,244
OKEx (Futures) ETH-USDT-SWAP -0.046 0.01 -0.00239 314,352,958 10,877,960,848
Prime XBT ETH/USD 0.000 0.04 0.00000 287,999,500 65,345,574
MEXC Global (Futures) ETH_USDT -0.016 0.02 0.00590 270,070,082 182,652,601
Hopex ETHUSDT -0.024 0.00 0.00000 263,321,689 1,877,343,214
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
dYdX Perpetual ETH-USD -0.096 0.02 -0.00184 192,633,722 1,879,015,771
MXC (Futures) ETH_USD 0.136 0.02 0.02000 179,583,950 6,033
Bybit ETHUSDT -0.056 0.04 0.01000 172,496,046 1,077,502,470
C-Trade ETHUSDT 0.039 0.01 0.01000 146,987,203 63,921,531
OKEx (Futures) ETH-USD-SWAP -0.037 0.02 0.01247 145,091,450 1,209,591,974
Phemex (Futures) ETHUSD -0.030 0.01 0.01000 114,895,589 137,748,117
MCS ETHUSDT_QUANTO_PERP 0.045 0.05 0.02541 111,555,293 1,505,291
BitZ (Futures) 102 0.039 0.12 0.00000 94,644,211 283,991,832
C-Trade ETHUSD -0.169 0.02 0.03820 77,844,107 14,480,653
BitMEX ETHUSD -0.088 0.03 0.01930 75,205,149 346,278,034
ZBG Futures ETH_USDT -0.082 0.02 -0.00646 73,482,433 1,519,547
Prime XBT ETH/BTC 0.000 0.14 0.00000 67,743,500 894,037
AAX Futures ETHUSDTFP 10.159 0.05 0.00242 67,386,482 328,335,443
Kraken (Futures) PI_ETHUSD 0.063 0.16 0.01120 63,075,653 137,550,990
Huobi Futures ETH-USDT 0.070 0.01 0.00886 59,505,087 1,068,287,912
Bitget Futures CMT_ETHUSDT 0.011 0.01 0.00022 55,647,764 238,318,674
Huobi Futures ETH-USD 0.040 0.01 0.00953 49,062,330 791,802,493
CoinFLEX (Futures) ETH-USD-SWAP-LIN 0.000 0.01 0.00070 48,510,188 652,153,357
Bitforex (Futures) SWAP-USD-ETH 0.043 0.02 -0.01300 37,095,246 444,604,834
Perpetual protocol ETH_USDC 0.000 0.00 -0.01515 29,916,731 25,962,495
MEXC Global (Futures) ETH_USD -0.016 0.06 0.02920 23,521,500 1,532
BTSE (Futures) ETHPFC 0.142 0.33 0.00000 21,606,222 144,697,778
BitZ (Futures) ETH_USDT_BZ 0.090 0.14 0.00000 21,528,099 1,004,554,589
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
Bitget Futures ETHUSD 0.012 0.01 0.00828 1,739,689 3,036,942
MCDEX (BSC) USD-ETH 0.000 0.03 0.00026 1,245,863 78
AscendEX (BitMax) (Futures) ETH-PERP 0.091 0.00 0.00233 1,129,836 5,615,609
MCDEX (BSC) ETH-BUSD 0.000 0.25 0.03507 1,117,724 972,744
Poloniex Futures ETHUSDTPERP 0.003 0.23 0.00000 1,067,805 3,799,436
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 -0.143 0.08 0.00000 722,619 19,787,666
Hopex ETHUSD -0.034 0.00 0.00000 674,610 18,057
BigONE Futures ETHUSDT -0.003 0.05 0.01000 584,356 720,527,985
Gate.io (Futures) ETH_USD -0.233 0.82 0.01000 529,124 1,482,948
Crypto.com Exchange (Futures) ETHUSD-220325 -0.576 0.02 0.00000 374,690 506,573
MCDEX (Arbitrum) ETH-USDC 0.000 0.34 -0.05402 359,880 119,627
BaseFEX ETHUSDT 0.193 0.11 0.01000 293,344 2,867,590
BigONE Futures ETHUSD -0.064 0.06 0.01000 148,027 23,374,605
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
Crypto.com Exchange (Futures) ETHUSD-220624 -2.527 0.02 0.00000 49,811 76,399
Binance (Futures) ETHBUSD 0.027 0.01 0.01000 47,592 897,096,501
Crypto.com Exchange (Futures) ETHUSD-211231 0.018 0.04 0.00000 42,287 15,009
Crypto.com Exchange (Futures) ETHUSD-220128 0.008 0.12 0.00000 21,041 19,314
Crypto.com Exchange (Futures) ETHUSD-220225 -0.470 0.18 0.00000 10,323 9,843
ACDX Futures ETH-PERP -4.708 0.06 0.00000 705 355,876
AAX Futures ETHUSDFP -0.423 0.03 0.01051 212 203
Gate.io (Futures) ETH_USDT -0.107 0.01 0.01000 0 3,401,593,855
CoinTiger (Futures) ETHUSDT -0.009 0.02 0.00684 0 1,160,686,541
BTCEX (Futures) ETH-USDT-PERPETUAL -0.086 6.13 0.01000 0 277,355,685
Biki (Futures) 4 -4.599 0.02 -0.03451 0 208,609,701
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
Bitfinex (Futures) ETHF0:BTCF0 0.118 0.02 0.00000 0 39,821,497
Stormgain Futures ETH-PERPUSDT 0.000 0.11 0.00400 0 35,842,917
Injective Exchange (Futures) ETH/USDT PERP -3.321 0.09 0.00000 0 31,952,646
GMO Japan (Futures) ETH_JPY 0.000 0.35 0.00000 0 30,336,302
Binance (Futures) ETHUSDT_210326 -5.274 0.25 0.00000 0 17,670,699
Injective Pro (Futures) ETH/USDT PERP -1.044 0.28 0.00000 0 13,488,237
ZBG Futures ETH_USD-R -0.028 0.02 0.00285 0 12,828,745
BTCEX (Futures) ETH-24JUN22 -2.566 6.33 0.01000 0 10,826,289
BTCEX (Futures) ETH-25MAR22 -0.743 6.19 0.01000 0 8,421,313
EQONEX (Perpetual) 29 -1.306 0.09 -1.13200 0 7,006,324
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
Bibox (Futures) 4ETH_USDT 0.000 0.01 0.00000 0 3,927,217
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:EUTF0 -0.032 0.07 0.00000 0 2,651,997
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) 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 ETH-USDC 0.000 0.24 0.15450 0 502,913
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
Stormgain Futures ETH-PERPBTC 0.000 0.31 0.00400 0 210,050
MCDEX ETH-PERP -6.764 0.29 -0.03509 0 110,000
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
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 (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
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-0325 1.716 0.53 988,650 100,726 25/3/2022

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 0.164 0.10 0.10560 10,493,389 40,342,153
Gate.io (Futures) ALT_USDT 0.692 1.99 0.01000 399 12,161
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 -0.151 0.13 0.01417 1,029,496 105,482
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT 0.173 0.02 -0.03346 6,730 31,965,728
BTSE (Futures) BDIPFC 0.155 0.27 0.00000 3,399 17,862

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.