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 0.023 0.09 1,143,747,738 1,291,534,555 31/3/2023
BTCC Futures ETH-WEEKLY 0.027 0.08 1,066,837,092 1,204,676,968 7/10/2022
OKX (Futures) ETH-USD-221230 0.276 0.02 176,938,540 74,922,017 30/12/2022
Binance (Futures) ETHUSD_221230 0.134 0.01 94,184,640 68,593,841 30/12/2022
OKX (Futures) ETH-USDT-221230 0.338 0.01 3,825,390 51,309,481 30/12/2022
OKX (Futures) ETH-USDT-221007 0.074 0.03 478,330 40,657,507 7/10/2022
FTX (Derivatives) ETH-1230 0.599 0.02 262,885,897 40,259,564 30/12/2022
Binance (Futures) ETHUSD_230331 0.381 0.01 7,540,960 25,845,111 31/3/2023
OKX (Futures) ETH-USDT-221014 0.082 0.02 205,540 25,222,293 14/10/2022
OKX (Futures) ETH-USD-230331 0.537 0.02 39,099,660 23,964,224 31/3/2023
OKX (Futures) ETH-USDT-230331 0.532 0.01 653,860 23,671,363 31/3/2023
OKX (Futures) ETH-USD-221007 0.077 0.02 8,310,540 18,684,209 7/10/2022
Huobi Futures ETH_CQ 0.315 0.01 15,644,970 18,468,217 30/12/2022
Deribit ETH-30DEC22 0.366 0.04 90,514,170 14,807,000 30/12/2022
OKX (Futures) ETH-USD-221014 0.145 0.03 6,138,330 9,073,471 14/10/2022
FTX (Derivatives) ETH-0331 0.883 0.02 36,911,528 6,916,975 31/3/2023
Deribit ETH-28OCT22 -0.040 0.07 13,621,297 4,879,076 28/10/2022
Huobi Futures ETH_NW 0.166 0.03 1,796,700 3,968,340 14/10/2022
Huobi Futures ETH_CW 0.135 0.02 3,090,640 3,954,387 7/10/2022
Huobi Futures ETH_NW 0.051 0.02 1,397,090 3,917,579 7/10/2022
Deribit ETH-31MAR23 0.385 0.06 77,894,653 3,900,019 31/3/2023
Deribit ETH-14OCT22 -0.059 0.05 2,458,362 2,601,249 14/10/2022
Deribit ETH-7OCT22 -0.082 0.02 3,315,452 2,250,981 7/10/2022
Deribit ETH-30JUN23 0.202 0.16 30,311,983 1,089,414 30/6/2023
Deribit ETH-25NOV22 0.085 0.11 1,125,037 1,022,043 25/11/2022
Deribit ETH-29SEP23 0.737 0.19 137,250 84,724 29/9/2023

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 0.049 0.02 0.02096 3,073,155,762 7,332,575,198
FTX (Derivatives) ETH-PERP 0.021 0.02 -0.01200 1,692,414,244 1,888,055,445
Binance (Futures) ETHUSDT 0.110 0.01 0.00722 1,385,518,011 7,646,594,377
MEXC Global (Futures) ETH_USDT 0.044 0.01 0.00280 1,042,608,613 1,110,283,133
MXC (Futures) ETH_USDT -0.003 0.02 0.00827 985,385,032 150,738,726
C-Trade ETHUSDT 0.061 0.02 0.00000 715,488,424 18,999,732
Bybit (Futures) ETHUSDT 0.020 0.01 0.00650 506,469,040 1,296,628,470
Gate.io (Futures) ETH_USDT 0.040 0.02 0.00620 488,061,754 674,998,431
Bybit ETHUSDT 0.049 0.01 0.00140 458,515,321 3,066,846,994
C-Trade ETHUSD 0.057 0.01 0.01000 386,757,482 7,513,526
BTCEX (Futures) ETH-31MAR23 0.478 0.01 -0.00550 363,044,107 48,973,150
BTCEX (Futures) ETH-30DEC22 0.379 0.01 -0.00550 363,044,107 42,653,068
Phemex (Futures) ETHUSD 0.074 0.04 0.01000 347,759,281 1,826,085,639
AAX Futures ETHUSDTFP 0.006 0.08 0.02037 340,709,051 476,363,936
BTCC Futures ETHUSDT 0.037 0.08 0.00000 334,429,163 377,604,584
BTCEX (Futures) ETH-30SEP22 0.088 0.04 -0.00540 312,936,114 53,456,052
OKEx (Futures) ETH-USDT-SWAP -0.055 0.01 0.01217 254,856,013 6,288,747,772
Deribit ETH-PERPETUAL 0.058 0.01 -0.00930 249,214,725 130,172,898
Bybit ETHUSD 0.029 0.01 0.01000 242,232,653 566,743,640
Bybit (Futures) ETHUSD 0.042 0.01 0.01000 220,696,459 174,106,870
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 191,770,500 81,947,968
Bitrue (Futures) ETH-USDT 0.145 0.01 0.00787 190,316,561 1,628,157,427
Binance (Futures) ETHUSD_PERP 0.052 0.01 0.00150 180,194,520 1,339,786,362
MXC (Futures) ETH_USD 0.136 0.02 0.02000 179,583,950 6,033
BingX (Futures) ETH-USDT 0.000 0.02 -0.01000 159,627,753 491,478,976
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
Crypto.com Exchange (Futures) ETHUSD-PERP 0.013 0.01 -0.00050 132,078,755 132,078,755
BitMEX ETHUSD -0.105 0.01 0.08720 115,519,960 70,990,951
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
Prime XBT ETH/BTC 0.000 0.15 0.00000 82,951,500 1,998,748
Hopex ETHUSDT -0.005 0.00 0.00000 79,370,285 499,938,515
dYdX Perpetual ETH-USD 0.008 0.02 -0.00037 68,263,592 244,562,826
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
Bitmart Futures 2 0.096 0.01 0.00295 42,807,823 326,963,232
Huobi Futures ETH-USDT 0.068 0.01 -0.00461 34,688,746 151,246,145
BTSE (Futures) ETHPFC 0.039 0.08 0.00000 24,044,792 64,412,315
Bitfinex (Futures) ETHF0:USTF0 -0.048 0.06 0.00000 24,029,008 7,124,971
BitZ (Futures) ETH_USDT_BZ 0.090 0.14 0.00000 21,528,099 1,004,554,589
Huobi Futures ETH-USD 0.077 0.01 -0.00004 19,645,610 35,730,861
Perpetual protocol ETH_USDC 0.000 0.00 -0.02000 17,280,873 0
Kraken (Futures) PI_ETHUSD -0.091 0.06 0.00156 11,343,560 16,955,089
Bitforex (Futures) SWAP-USD-ETH 0.081 0.01 -0.01988 9,019,682 868,483,482
Phemex ETHUSD -0.173 0.11 0.07048 6,296,398 27,182,027
Deribit ETH_USDC-PERPETUAL 0.044 0.02 -0.00910 5,438,631 7,164,064
WOO Network (Futures) PERP_ETH_USDT -0.003 0.02 0.00077 4,886,470 34,166,706
CoinEx (Futures) ETH-USDT 0.092 0.01 0.00068 4,871,855 45,443,674
BitZ (Futures) 2 0.002 0.11 0.00000 2,457,740 37,688,760
AscendEX (BitMax) (Futures) ETH-PERP -0.168 0.00 0.00778 1,853,874 987,480
Bitget Futures ETHUSD 0.012 0.01 0.00828 1,739,689 3,036,942
MEXC Global (Futures) ETH_USD 0.041 0.01 -0.01350 1,706,400 1,037,786
Poloniex Futures ETHUSDTPERP 0.029 0.04 0.00000 1,579,969 1,354,250
Drift Protocol ETH-PERP 0.000 0.00 0.12676 1,550,034 0
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
ZB (Derivatives) ETH_USDT 0.040 0.03 -0.01680 906,341 1,223,296,478
Bit.com ETH-PERPETUAL -0.066 0.01 0.00000 816,811 2,844,145
Mango Markets (Derivatives) ETH-PERP -0.261 0.21 0.00052 729,712 1,310,302
BigONE Futures ETHUSDT 0.073 0.08 0.00949 540,484 129,732,735
Bit.com (Futures) ETH-PERPETUAL 0.002 0.02 0.00000 505,443 113,308
Hopex ETHUSD 0.000 0.00 0.00000 502,250 21,451
CoinEx (Futures) ETH-USD 0.048 0.01 0.06815 452,842 305,497
Gate.io (Futures) ETH_USD -0.506 0.08 0.01000 293,693 1,042,093
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
Binance (Futures) ETHBUSD 0.063 0.01 -0.00067 182,010 1,429,090,136
ZB (Derivatives) ETH_QC -0.075 0.11 0.01000 163,121 16,494,457
Crypto.com Exchange (Futures) ETHUSD-220624 -0.045 0.06 0.00000 157,161 1,840,104
BigONE Futures ETHUSD -0.020 0.08 0.01000 117,527 8,680,511
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 26,439,934
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 0.000 0.10 0.00000 8,318 12,960
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 0.594 0.02 0.00039 89 1
BTCEX (Futures) ETH-USDT-PERPETUAL -0.020 0.01 -0.00550 0 3,345,489,246
CoinTiger (Futures) ETHUSDT 0.082 0.01 0.00893 0 771,763,372
Deepcoin (Derivatives) ETHUSD 0.054 0.06 0.01982 0 213,088,815
Biki (Futures) 4 -4.599 0.02 -0.03451 0 208,609,701
Stormgain Futures ETH-PERPUSDT 0.000 0.11 0.00400 0 206,967,095
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
Binance (Futures) ETHUSDT_210326 -5.274 0.25 0.00000 0 17,670,699
GMO Japan (Futures) ETH_JPY 0.000 0.08 0.00000 0 9,235,889
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
Bitfinex (Futures) ETHF0:BTCF0 -0.020 0.02 0.00000 0 4,715,797
Perpetual Protocol ETH_USD 0.000 0.00 0.00004 0 4,626,358
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
Bitget Futures ETHPERP_CMCBL 0.072 0.01 -0.01000 0 3,128,678
HitBTC (Derivatives) ETHUSDT_PERP 0.053 0.02 0.01000 0 3,031,237
ZBG Futures ETH_USD-R20190927 0.000 0.19 0.00000 0 2,922,578
MCDEX 00001 0.000 0.00 0.00000 0 1,822,608
Bibox (Futures) 4ETH_USDT 0.000 0.02 0.00000 0 1,616,416
Delta Exchange ETHBTC -0.223 0.02 0.01000 0 1,295,656
Helix (Futures) ETH/USDT PERP 0.028 0.05 0.00150 0 1,030,935
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
Bitmart Futures 32896 0.055 0.02 0.04000 0 156,653
MCDEX ETH-PERP -6.764 0.29 -0.03509 0 110,000
Bitfinex (Futures) ETHF0:EUTF0 -0.281 0.37 0.00000 0 49,833
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
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 0.31 0.00400 0 3,925
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
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-1230 1.632 0.08 858,521 107,388 30/12/2022

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 -0.014 0.04 0.01200 9,975,210 2,934,329
Gate.io (Futures) ALT_USDT -2.170 1.12 0.36710 6,612 394,249
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 0.077 0.14 0.00562 660,558 1,109
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT -0.088 0.02 0.01000 9,025 4,958,527
BTSE (Futures) BDIPFC -0.143 0.30 0.00000 2,482 41,193
BTSE (Futures) BTCDOMPFC 0.306 15.67 0.00000 0 617,732

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.