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-QUARTERLY 0.009 0.15 0 3,644,024,550 31/3/2023
Binance (Futures) ETHUSD_230331 -0.717 0.01 76,250,730 82,420,555 31/3/2023
OKX (Futures) ETH-USD-230331 -0.690 0.02 126,633,310 62,557,127 31/3/2023
FTX (Derivatives) ETH-0331 2.072 0.04 46,159,162 53,894,443 31/3/2023
OKX (Futures) ETH-USDT-230331 -0.735 0.01 29,550,076 31,089,333 31/3/2023
Bybit (Futures) ETHUSDH23 -0.472 0.02 0 19,168,730 31/3/2023
OKX (Futures) ETH-USD-230630 -1.374 0.04 23,384,460 15,714,743 30/6/2023
OKX (Futures) ETH-USDT-230630 -1.350 0.01 20,149,043 14,786,473 30/6/2023
Binance (Futures) ETHUSD_230630 -1.681 0.01 28,038,430 13,347,131 30/6/2023
Bybit (Futures) ETHUSDM23 -0.874 0.01 0 13,065,121 30/6/2023
Huobi Futures ETH_CQ 0.616 0.09 6,264,850 12,726,188 31/3/2023
OKX (Futures) ETH-USDT-230210 -0.031 0.02 1,086,504 9,033,903 10/2/2023
OKX (Futures) ETH-USDT-230217 -0.292 0.01 704,178 6,357,699 17/2/2023
OKX (Futures) ETH-USD-230210 0.017 0.03 1,141,680 6,136,998 10/2/2023
Huobi Futures ETH_CW -0.027 0.02 228,030 3,205,339 10/2/2023
OKX (Futures) ETH-USD-230217 -0.108 0.02 592,330 2,936,451 17/2/2023
Huobi Futures ETH_NW -0.110 0.02 306,930 2,365,570 10/2/2023
Huobi Futures ETH_NW -0.039 0.04 227,900 2,092,139 17/2/2023
Deribit ETH-10FEB23 -0.070 0.03 4,936,176 1,996,829 10/2/2023
Deribit ETH-31MAR23 -0.391 0.06 74,138,319 1,753,986 31/3/2023
Deribit ETH-24FEB23 -0.118 0.02 4,679,706 817,647 24/2/2023
Deribit ETH-17FEB23 -0.116 0.02 1,248,898 806,208 17/2/2023
Deribit ETH-30JUN23 -1.070 0.08 38,004,251 583,807 30/6/2023
Deribit ETH-29SEP23 -1.548 0.05 7,029,258 491,195 29/9/2023
Deribit ETH-29DEC23 -2.153 0.24 6,801,653 88,065 29/12/2023

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
Deepcoin (Derivatives) ETHUSDT 0.017 0.01 0.00955 5,186,431,377 3,225,080,065
Binance (Futures) ETHUSDT 0.029 0.01 0.01000 1,691,227,594 5,868,013,815
MXC (Futures) ETH_USDT -0.003 0.02 0.00827 985,385,032 150,738,726
MEXC Global (Futures) ETH_USDT 0.012 0.01 0.01000 803,462,178 758,622,818
FTX (Derivatives) ETH-PERP -0.617 0.02 0.40560 792,303,620 3,495,077,764
C-Trade ETHUSDT 0.043 0.02 0.00000 789,703,189 33,658,810
Bybit (Futures) ETHUSDT 0.028 0.01 0.01000 673,779,806 1,219,417,363
AAX Futures ETHUSDTFP 0.371 0.09 0.24222 540,279,198 762,127,425
C-Trade ETHUSD 0.047 0.01 0.01000 486,780,315 6,657,776
Bybit ETHUSDT 0.049 0.01 0.00140 458,515,321 3,066,846,994
Prime XBT ETH/USD 0.000 0.06 0.00000 397,319,800 39,839,083
Prime XBT ETH/BTC 0.000 0.14 0.00000 321,352,700 3,753,535
Gate.io (Futures) ETH_USDT 0.045 0.02 0.01000 320,851,316 451,329,359
BTCEX (Futures) ETH-30SEP22 0.088 0.04 -0.00540 312,936,114 53,456,052
Deribit ETH-PERPETUAL -0.018 0.01 0.00110 276,941,601 149,700,358
OKEx (Futures) ETH-USDT-SWAP -0.055 0.01 0.01217 254,856,013 6,288,747,772
Bybit ETHUSD 0.029 0.01 0.01000 242,232,653 566,743,640
Binance (Futures) ETHUSD_PERP 0.032 0.01 0.00394 239,676,410 887,887,829
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
Bybit (Futures) ETHUSD -0.002 0.01 0.01000 204,827,491 150,413,798
MXC (Futures) ETH_USD 0.136 0.02 0.02000 179,583,950 6,033
dYdX Perpetual ETH-USD 1.396 0.02 0.00324 155,884,272 891,186,622
BingX (Futures) ETH-USDT 0.023 0.01 0.01020 155,844,928 418,810,750
OKEx (Futures) ETH-USD-SWAP -0.031 0.01 -0.02141 151,636,920 546,197,796
BTCEX (Futures) ETH-24JUN22 0.369 0.04 0.01000 140,877,096 66,467,431
BitMEX ETHUSD -0.105 0.01 0.08720 115,519,960 70,990,951
Phemex (Futures) ETHUSD 0.032 0.01 0.01000 115,321,877 446,855,957
BTSE (Futures) ETHPFC 0.004 0.02 0.00000 114,028,210 606,424,483
Hopex ETHUSDT -2.341 0.00 0.00000 113,836,893 426,064,272
BitZ (Futures) 102 0.039 0.12 0.00000 94,644,211 283,991,832
ZBG Futures ETH_USDT 0.057 0.03 -0.01359 93,323,046 532,011
Bitrue (Futures) ETH-USDT 0.070 0.01 0.01015 80,765,387 1,449,965,781
MCS ETHUSDT_QUANTO_PERP -0.446 0.07 0.01000 65,367,972 604,755
Bitget Futures CMT_ETHUSDT 0.011 0.01 0.00022 55,647,764 238,318,674
Huobi Futures ETH-USDT -0.050 0.01 0.01931 45,793,203 157,087,806
Bitmart Futures 2 0.046 0.02 -0.04000 39,343,511 536,506,637
Deepcoin (Derivatives) 4ETHUSDT 0.021 0.01 0.01279 23,932,907 2,737,090,988
BTCEX (Futures) ETH-31MAR23 0.439 0.02 -0.00930 21,698,099 30,968,384
BTCEX (Futures) ETH-30DEC22 0.375 0.01 -0.00930 21,698,099 28,686,834
BitZ (Futures) ETH_USDT_BZ 0.090 0.14 0.00000 21,528,099 1,004,554,589
Perpetual protocol ETH_USDC 0.000 0.00 -0.02000 17,280,873 0
Bitfinex (Futures) ETHF0:USTF0 -0.044 0.02 0.00000 14,193,911 8,487,962
Bitforex (Futures) SWAP-USD-ETH 0.108 0.01 0.01794 12,051,147 478,384,975
Phemex ETHUSD -0.173 0.11 0.07048 6,296,398 27,182,027
Kraken (Futures) PI_ETHUSD 0.028 0.02 0.00368 6,040,122 7,144,473
CoinEx (Futures) ETH-USDT 0.006 0.01 0.00356 5,279,989 46,125,173
Huobi Futures ETH-USD -0.017 0.01 0.01000 5,248,450 15,354,278
WOO Network (Futures) PERP_ETH_USDT -0.055 0.02 0.00049 4,764,605 46,610,400
Perpetual Protocol ETH_USD 0.000 0.00 -0.00002 3,191,594 7,601,311
BitZ (Futures) 2 0.002 0.11 0.00000 2,457,740 37,688,760
Deribit ETH_USDC-PERPETUAL -0.016 0.02 0.00040 2,154,490 2,444,574
Bitget Futures ETHUSD 0.012 0.01 0.00828 1,739,689 3,036,942
Drift Protocol ETH-PERP 0.000 0.00 0.12676 1,550,034 0
Poloniex Futures ETHUSDTPERP -0.007 0.01 0.01000 1,410,343 1,172,290
BigONE Futures ETHUSDT 0.025 0.11 0.01000 1,027,555 132,034,249
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
MEXC Global (Futures) ETH_USD 0.002 0.01 0.00390 927,870 209,755
Crypto.com Exchange (Futures) ETHUSD-PERP 0.039 0.02 -0.00097 914,844 68,221,296
ZB (Derivatives) ETH_USDT 0.040 0.03 -0.01680 906,341 1,223,296,478
HitBTC (Derivatives) ETHUSDT_PERP 0.049 0.02 -0.01020 890,937 11,182,628
Bit.com ETH-PERPETUAL -0.066 0.01 0.00000 816,811 2,844,145
AscendEX (BitMax) (Futures) ETH-PERP 0.087 0.00 -0.00587 787,629 754,413
Mango Markets (Derivatives) ETH-PERP -0.137 0.09 0.00166 533,216 16,537
Hopex ETHUSD -2.006 0.00 0.00000 530,820 15,418,910
Bit.com (Futures) ETH-PERPETUAL 0.002 0.02 0.00000 505,443 6,767,821
BaseFEX ETHUSDT 0.193 0.11 0.01000 293,344 2,867,590
Binance (Futures) ETHBUSD 0.039 0.01 0.00707 281,113 1,112,350,678
Bitget Futures ETHUSD_DMCBL_230630 -1.365 0.04 0.00000 244,083 414,279
Bitget Futures ETHUSD_DMCBL_221230 -1.365 0.04 0.00000 244,083 414,279
CoinEx (Futures) ETH-USD -0.015 0.13 0.01676 212,762 393,594
Crypto.com Exchange (Futures) ETHUSD-220325 0.085 0.09 0.00000 200,695 187,350
ZB (Derivatives) ETH_QC -0.075 0.11 0.01000 163,121 16,494,457
Gate.io (Futures) ETH_USD -0.180 0.07 0.01000 162,585 1,397,070
Crypto.com Exchange (Futures) ETHUSD-220624 -0.045 0.06 0.00000 157,161 1,840,104
Bitget Futures ETHUSD_DMCBL_230331 -0.466 0.13 0.00000 143,879 416,839
BigONE Futures ETHUSD 0.005 0.06 0.01000 141,393 7,958,368
Powertrade (Derivatives) ETH-USD-PERPETUAL -13.575 0.01 174,247.00000 116,309 87,572
BaseFEX ETHXBT -1.643 3.08 0.01000 80,183 789,729
Bit.com (Futures) ETH-USDT-PERPETUAL -0.064 0.09 0.00000 70,871 76,503
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
MCDEX (Arbitrum) ETH-USDC -1.512 0.64 -0.01611 52,386 103
BitZ (Futures) ETH_USD -0.001 0.10 0.00000 52,056 304,510
MCDEX (BSC) ETH-BUSD 0.000 0.74 0.02124 48,636 370
Crypto.com Exchange (Futures) ETHUSD-211231 0.018 0.04 0.00000 42,287 15,009
CoinFLEX (Futures) ETH-USD-SWAP-LIN 0.078 0.29 0.00000 12,574 450
Bybit (Futures) ETHPERP 0.012 0.01 0.01000 6,963 9,991,138
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
Bit.com (Futures) USD-M:ETH-USD-PERPETUAL -0.006 0.06 0.00000 373 200,428,368
BIT (Futures) USD-M:ETH-USD-PERPETUAL 0.017 0.01 0.00690 320 36,442,408
AAX Futures ETHUSDFP -0.423 0.03 0.01051 212 203
MCDEX (BSC) USD-ETH 0.594 0.02 0.00039 89 1
XT.COM (Derivatives) ETH_USDT 0.017 0.00 0.01000 0 3,447,110,024
BTCC Futures ETHUSDT -0.044 0.15 0.00000 0 2,530,520,676
BTCEX (Futures) ETH-USDT-PERPETUAL -0.009 0.01 0.00830 0 2,131,628,622
Bitmart Futures ETHUSDT 0.045 0.01 0.01970 0 785,784,290
CoinTiger (Futures) ETHUSDT 0.051 0.01 0.00531 0 698,318,253
Biki (Futures) 4 -4.599 0.02 -0.03451 0 208,609,701
XT.COM (Derivatives) ETH_USD 0.147 0.00 -0.03390 0 117,290,030
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
Deepcoin (Derivatives) ETHUSD 0.014 0.05 -0.00727 0 100,359,824
Stormgain Futures ETH-PERPUSDT 0.000 0.10 0.00400 0 53,635,794
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
Binance (Futures) ETHUSDT_210326 -5.274 0.25 0.00000 0 17,670,699
GMO Japan (Futures) ETH_JPY 0.000 0.06 0.00000 0 17,291,894
ZBG Futures ETH_USD-R 0.126 0.01 -0.03722 0 6,429,425
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
Bitget Futures ETHPERP_CMCBL -0.011 0.02 0.00830 0 4,153,792
Crypto.com (Futures) ETHUSD-PERP 0.000 0.05 0.00000 0 3,644,318
Helix (Futures) ETH/USDT PERP 0.086 0.01 -0.00110 0 3,073,043
ZBG Futures ETH_USD-R20190927 0.000 0.19 0.00000 0 2,922,578
Globe (Derivatives) ETH-PERP 0.068 0.05 0.00000 0 2,292,637
Bibox (Futures) 4ETH_USDT 0.000 0.01 0.00000 0 1,847,945
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
Bitfinex (Futures) ETHF0:BTCF0 0.101 0.03 -0.01138 0 414,926
Crypto.com Exchange (Futures) ETHUSD-210924 0.035 0.08 0.00000 0 391,068
Bitmart Futures 32896 0.056 0.01 0.03000 0 210,332
MCDEX ETH-PERP -6.764 0.29 -0.03509 0 110,000
Bitmart Futures ETHUSD 0.058 0.02 0.00751 0 107,429
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
Helix (Futures) ETH/USDT 19SEP22 -0.012 0.08 0.00000 0 29,716
Injective Pro (Futures) ETH/USDT PERP 1.358 0.01 0.00040 0 25,513
Bitfinex (Futures) ETHF0:EUTF0 0.038 0.09 0.00000 0 23,802
Alpha5 ETHUSDT -4.824 0.20 -0.00077 0 11,274
Binance JEX (Futures) ETHUSDT 1.791 0.21 0.01000 0 11,130
MEXC Global (Futures) ETH_MUSDT -0.001 94.73 0.00000 0 7,049
Stormgain Futures ETH-PERPBTC 0.000 0.30 0.00400 0 5,462
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
EQONEX (Perpetual) 29 -1.306 34.88 -5.88169 0 16
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.

Unfortunatelly, no future contract on index consisting of ETH exists.

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 -9.888 0.60 10.36560 5,825,356 8,460,075
MEXC Global (Futures) ALT_USDT -0.840 1.67 0.10000 130,161 424,157
Gate.io (Futures) ALT_USDT -0.060 18.68 0.01000 7 2,265
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
BingX (Futures) BTCDOM-USDT 0.020 0.01 -0.01010 550,992 1,481,068
Bitfinex (Futures) BTCDOMF0:USTF0 0.020 0.08 0.00000 222,541 1,061
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT 0.044 0.02 0.01000 5,834 4,047,989
BTSE (Futures) BDIPFC -0.143 0.30 0.00000 2,482 41,193
BTSE (Futures) BTCDOMPFC -0.948 4.14 0.00000 0 4,154,237

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.