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Ahead of the Ethereum Merge, Ethereum Options Interest Skyrocket

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Ethereum options open interest has topped the $8 billion mark, according to statistics published by Coinglass. In contrast, the open interest in Bitcoin options presently stands at $5.3 billion. The number of current contracts that have not yet been resolved is the generally used technical statistic.

As traders exit their holdings, open interest declines. Traders usually monitor the aforementioned indicator to ascertain the market’s direction. A certain market trend is likely to continue if additional traders enter the market. Early in August, Ethereum eclipsed Bitcoin for the first time ever in the options market.

In a recent tweet, Deribit, the biggest bitcoin options trading platform, noted the “flippening.” We approve of the merging, a tweet by the company reads.

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Ahead of the Ethereum Merge, Ethereum Options Interest Skyrocket 2

When Ethereum merge?

The second-largest cryptocurrency’s impending switch to the proof-of-stake consensus algorithm has been hailed as a crucial positive trigger for both it and the larger cryptocurrency market. In recent weeks, activity on the Ethereum spot market has increased, and the price of the Bitcoin alternative has risen past $1,900.

It seems sensible that options traders would want to participate in the action now that Ethereum is receiving renewed attention. On September 15, the merge, which is likely the most eagerly awaited crypto-related event of 2022, is predicted to take place. Technical problems that could occur during the last round of testing could cause the update to be slightly delayed.

The mainnet merge is scheduled to take place in September, although the dates might differ slightly on what developers discover after the Goerli testnet merge. Later this week, developers may also talk about the Goerli testnet merge and decide on a time for the mainnet merge.

Prior to Goerli, ETH developers performed merge rehearsals on several testnets for those who were unfamiliar. Blockchains need testnets like Goerli because they give developers a valuable tool for testing updates before they are implemented on the main network.

The testnets’ operating principles are comparable to those of their mainnet equivalents and enable developers to look for faults or security gaps before enabling the main blockchain, preventing any flaws from having an impact.

An Ethereum Whale Scoops up $1.7B Worth ETH Futures in an Hour

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An unnamed Ethereum whale scooped up $1.7 billion in Ethereum futures contracts in less than an hour, marking the largest hourly volume spike in market orders over the span of 7 months.

The significant purchasing volume was not followed by a surge in short liquidations, indicating that the assets were not severely driven down despite the recent bad performance.

Such a sharp increase in futures trading volume indicates that as traders begin to leverage their holdings through longs, Ethereum’s rebound rally is gaining steam. This is also a precursor of a rally that is gaining momentum.

When the volume of derivatives moves upward, assets often climb more vigorously, and market volatility increases.

Since June 13, when Ethereum’s average daily volatility started to fluctuate around the annual low due to Ether’s continued under-leverage and traders’ lack of willingness to back the second-largest cryptocurrency on the market.

Can Ethereum’s recent rally be attributed to the Merge?

When the date for the Merge network upgrade was made public, ETH experienced a stunning 50 percent increase as investors began to see greater promise in the second-largest cryptocurrency.

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An Ethereum Whale Scoops up $1.7B Worth ETH Futures in an Hour 4

Along with the resurrected price performance of ETH, we are also witnessing a steady exodus of miners from the blockchain to alternative currencies, such as Ethereum Classic, which recently experienced a 40% increase as a result of investor optimism that it will eventually take over the hashrate of Ether.

Since “The Merge” rally started on the market, Buterin’s brainchild has outperformed digital gold by approximately 30%, putting ETH ahead of Bitcoin in terms of market performance due to the network’s intrinsic development.

PoolTogether’s Legal Defense Fund Raises 471 ETH Using NFTs

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PoolTogether, a DeFi platform, has collected 470.90 Ether (ETH) from NFT sales to help fund its legal defense against a bogus class action lawsuit.

PoolTogether is now more than halfway to its target of raising at least 769 ETH (approximately $1.5 million) to fight a lawsuit it claims has “no merit.” Before the NFT financing campaign concludes, the platform has another 21 days. On its NFT minting page, it stated:

“PoolTogether Inc. is a defendant in a putative class action lawsuit. A person deposited the equivalent value of $12.00 into the protocol and is now suing PoolTogether Inc. and others for substantial damages.”

PoolTogether fundraising is to assist a lawsuit

Joseph Kent, the former technology lead for Senator Elizabeth Warren’s 2020 presidential campaign, filed a class-action complaint against the project, its inventor Leighton Cusack, and several of its related partners in January after depositing around $12 worth of stablecoins into the protocol.

Kent claims that PoolTogether is running an illegal lottery in New York and that the platform “may never offer a positive expected value” since it keeps up to 50% of each weekly win as a reserve, according to an amended lawsuit filed in February.

Kent is seeking compensation equal to twice the amount he spent on lottery tickets in PoolTogether, as well as twice the reasonable amount of attorney’s fees and legal costs.

PoolTogether claims to be able to offer risk-free lotteries on stablecoin deposits by generating interest with the money of ticket buyers and liquidity providers using DeFi lending protocols.

The lottery winner receives the majority of the proceeds, while the runner-ups receive a smaller portion. All other participants will be refunded in full. According to PoolTogether’s website, the company presently offers weekly rewards totaling $80,436 across its V3 and V4 pools.

PoolTogether stated that the “allegations lack merit, but a detailed defense is still required,” citing a January Wall Street Journal story that stated that the case looks to be “a purposeful effort to put some of the DeFi community’s key ideas to the test.”

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PoolTogether’s Legal Defense Fund Raises 471 ETH Using NFTs 6

So far, the community has shown great support for the campaign, with 2,416 NFTs sold for a total of 470.90 ETH, which is currently worth $911,959. The platform will have raised 1,076 ETH ($2.2 million) if all NFTs are sold.

The NFTs feature a purple animated avatar named “Pooly” and are available in three levels of rarity and pricing, with the supporter tier consisting of 10,000 NFTs going for 0.1 ETH each, the lawyer tier consisting of 1000 NFTs going for 1 ETH each, and the judge tier consisting of 10 NFTs in total going for 75 ETH each.

Jill Gunter weighs in on the battle between old blockchains and new protocols

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Leading crypto investor Jill Gunter has shared her view on the fierce competition between multiple established blockchains and the arrival of several new protocols.

Gunter’s exposure to crypto began in 2011 during her stint at Goldman Sachs as a derivatives trader. Then she started research on blockchain protocols and worked as a VC at Slow Ventures before co-founding Espresso Systems.

In a recent podcast, Gunter spoke about the three distinct phases of development within the crypto industry that have led it to this moment of heated competition.

The first phase according to Gunter is the era of altcoins. This period was marked by the entry of protocols like Litecoin, Dogecoin, and ZCash, when developers sought to make improvements to the Bitcoin protocol such as changing the block size to increase the throughput of the system, she explained.

“What you came out with was a lot of blockchains and a lot of tokens that had a lot of the same properties as Bitcoin, but changed the feature set,” Gunter said.

The next phase, the entrepreneur claims came with the creation of Ethereum in 2015.

Finally, the modern era of layer-one blockchains began as developers tried to tweak the feature sets of programmable blockchains to address some of the issues with Ethereum that exist today, she said

“Alternative blockchains have not been fully put to the test like Ethereum”-Jill Gunter

Pointing to Ethereum’s high transaction and gas fees as bottlenecks that have left users frustrated. the co-founder then cited the recent Yuga Labs’ metaverse land sale fiasco when people trying to buy NFTs were faced with exorbitant gas fees and failed transactions because of the popularity of the drop.

While alternative blockchains such as Solana and Avalanche offer lower costs and can process transactions much faster than Ethereum, Gunter said these other chains have not been “fully put to the test that Ethereum has been” because they haven’t had to process as many users at once.

What’s more, these newer chains have all “centralized something in some way,” Gunter stated.

Adding that all the layer-one projects out there are “making the right noises,” but have yet to be put to the test by users.

Argentina’s Banking Giant Welcomes Crypto Trading

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Argentina’s largest private bank Banco Galicia with a market cap of nearly $1.3 billion, has finally added the option to trade cryptocurrencies on its platform. As per a Monday announcement, the financial firm will allow users to buy and sell Bitcoin [BTC], Ether [ETH], USDC, and XRP.

Banco Galicia has collaborated with Lirium, a Liechtenstein-based crypto product for digital wallets and mobile banking apps.

Sources also revealed that for the time being it is offering users the ability to buy and sell crypto, but not allowing them to withdraw or send crypto, Lirium COO Martin Kopacz said, adding that the bank also offers a custody feature.

Banco Galicia plans to launch the service to all of its customers by mid-May, Kopacz noted.

Stakeholders lending support to Argentina’s biggest crypto development

In order to facilitate crypto trading and custody service, Lirium has partnered with OSL, a Hong Kong-based digital asset trading platform that began operating in Latin America last October.

Lirium is also working with four Argentinian financial institutions that plan to unveil a crypto trading service, Kopacz said, without disclosing dates. Apart from that, Lirium is working on similar integrations in Brazil and Mexico, according to Kopacz.

Reasons behind Argentina’s exponential crypto growth

In frontier markets like Argentina, cryptocurrency has skyrocketed. The nation marred by an unstable financial system and strong government intervention in the country’s economy has driven Argentines to seek solace in digital assets, according to a new report from the BBC.

The highly volatile Argentine peso, the country’s national currency, has been subjected to a range of financial controls that make the everyday citizens’ basic life essentials like buying and investing with the currency, increasingly difficult.

Amid this chaos and uncertainty, cryptocurrency has enjoyed a steady boon. Data from Chainalysis showed that Argentines earned $1.86 billion in cryptocurrency in 2021.

So far, the government has taken a relaxed attitude to the cryptocurrency boom. Recently it rolled out a so-called “innovation hub” to bolster fintech and cryptocurrency startups in a regulated manner.

The latest addition by the country’s largest bank to allow crypto is certainly a good start towards encouraging user adoption.

Elon Musk has no plans to sell BTC, ETH, and DOGE

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Tesla and SpaceX pioneer Elon Musk said that he won’t sell his Bitcoin, Ether, and Dogecoin while advising his followers to hold ‘physical things’ like homes and stocks amid high inflation. Musk initially tweeted asking for opinions on the inflation rate which generated a huge response and raked roughly 128k likes at the time of this post.

In a series of tweets, discussing inflation, Musk said: “As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products than dollars when inflation is high.”

He added: “I still own & won’t sell my Bitcoin, Ethereum, or Doge.”

—Elon Musk (@elonmusk) March 14, 2022

In just a few minutes after the tweet, the value of DOGE briefly surged by 6.5%, the highest in 4 days at $0.119. The price has since retraced by almost 6% and is trading at $0.1132, press time.

Elon Musk sees significant recent inflation pressure

The billionaire entrepreneur is a big advocate of cryptocurrencies and an avid dogecoin supporter. While discussing the merits of crypto with leading figures from the tech industry, Elon Musk tweeted, “Tesla and SpaceX were “seeing significant recent inflation pressure in raw materials & logistics.”

For the record, inflation in the US hit 7.9% year-on-year in February, its highest since 1982, according to data provided by the Bureau of Labor Statistics. The conflict between Russia and Ukraine as well as high inflation in the U.S. and Europe has already become a real threat to the capital of tens of thousands of private investors around the world.

Many investors are looking for ways to protect their savings from inflation using cryptocurrencies. Some however are skeptical. Chad Steinglass, head of trading at CrossTower termed crypto more like a speculative asset, rather than a defensive one.

Bitcoin- A digital gold?

That said, volatility is nothing new in the world of digital currency. Even the most stable cryptocurrencies, like BTC and ETH, can rise and fall by tens of percent within a day. In the longer term, this trend will develop which will not only increase the price of Bitcoin but also result in a gradual decrease in its volatility.

Jeff Mei, director of global strategy at digital asset platform Huobi Global believes that Bitcoin is a great hedge against inflation because there is only 21 million Bitcoin available once they’re all mined.

What’s holding Ethereum [ETH] back from 5K?

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Ethereum [ETH] is hovering near its all-time high for quite some time now. There has been a possibility of a supply crunch scenario that is driving the price factor upward, due to the fact that the staking contract hit 8.2 million ETH with another 8 million tokens currently locked in the DeFi sector. Moreover, about 860k worth of ETH left the centralized exchanges, lowering the availability of the coin’s total supply and thereby increasing the likelihood of an impending supply squeeze condition.

However, there is a threat to Ethereum’s bullish price movement as the average network fee currently rose to a record high of $63.50, the highest in five months, as observed by prominent on-chain analytics platform, Santiment. In their own words, the tweet read,

“Ethereum is sitting at $4,780 at the time of this writing, and optimism that $5k is around the corner appears high. One of the few things holding $ETH back is the fact that the average network fee sits at $63.50, which was last this high on May 12th.”

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Here’s why Ethereum’s [ETH] price dominance might get delayed

The latest price surge and the overall market buoyancy might get stifled as high transaction fees continued to be the cause of concern. In fact, recently privacy enabled Brave browser opted for Solana blockchain for its ability to scale up transactions and cut down costs, instead of Ethereum.

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With respect to Bitcoin [BTC], the two largest crypto assets by market cap have had issues with high transaction cost for some time now but this month, Ethereum’s network fees rose significantly higher than the king coin. According to data in bitinfocharts, the average ETH transaction fee was currently sitting at $56.58 compared to $4.69 in the Bitcoin network, a massive 1106% higher.

Moreover, earlier this month, the leading altcoin had witnessed its first week of negative supply issuance driving the transaction fees a notch higher. Interestingly, more than 724 ETH or nearly $3 billion were destroyed since the London upgrade was newly introduced in August 2021. Despite the subsequent deflationary phenomenon, Ether supporters are encouraging users to migrate and utilize its emerging layer two ecosystems. In a nutshell, high gas fees have affected a majority of the users and caused them to opt for other cheaper options. 

Ethereum Rides The Bull As Market Shows Signs Of Recovery

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Ethereum’s rise and fall on the charts were also mimicked by other top honchos of the crypto world at July open. Although ETH’s price action evidently sided with the bear, long-term performances continued to blink green. It was also the biggest gainer in the top 10 club over the previous 7 days.

Ethereum’s market was majorly captured by Binance which controlled $1.345 billion of running circulation. Huobi, which came in second, only controlled $613 million of all Ethereum available. Ethereum also made news recently when its active addresses surpassed that of Bitcoin. On-chain analysis organization Santiment had tweeted:

“On a day that saw history be made with #Ethereum surpassing #Bitcoin in daily active addresses for the first time, #altcoins came to play. $KSM, $COMP, and $ZIL were among many projects to make an imprint on the markets, while $BTC ranged around $34.5k.”

Ethereum 1 hour:
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Ethereum Rides The Bull As Market Shows Signs Of Recovery 11

The PSAR’s hold above the price candles was enough to show the bear’s impact on the ETH market. If the pressure mounts, then the price can fall further. At the same time, the Relative Strength Index sharply fell towards the zero line after bouncing from it. The dip was a sign that the capital leaving the market had surpassed the influx.

Even Ethereum’s RSI showed no reprieve as the graph headed towards the oversold zone. Once more users buy into the market, one can see the graph climb into the overbought zone again.

Ethereum 1 day:
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Ethereum Rides The Bull As Market Shows Signs Of Recovery 12

The long-term chart was much more bullish than the hourly timeframe. The PSAR and the CMF were bullish with sharp inclines. The PSAR’s settlement below the candles was enough to boost user trust.

On its own, the CMF had climbed above the zero line with a sharp incline. The newly invigorated market was seen as the ideal candidate to lay the building blocks for Ethereum’s future. The RSI settled on the line as the selling pressure and buying pressure equalized on Monday.

Ethereum bucks the trend as market bigwigs set bearish tone

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Ethereum recently broke out of its bearish price action after settling below periodic moving averages. The onus was on the largest altcoin in the market to set its tone after Bitcoin also rallied on Monday. As Ethereum crossed the $2000 market again, Bitcoin surged to a week-long high of $34,000.

Last week’s bearish trend had triggered ETH sell-offs that prompted many naysayers to throw shade at the cryptocurrency. The latest climb was proof that the market was undergoing corrections just as seen in the S&P industry. After witnessing double-digit drops, Ethereum has recovered in the last 24 hours by a significant 9 percent.

At press time, ETH was trading for $2001 with a total market cap of $232 billion. Although this was miles ahead of Bitcoin, Ethereum’s market cap was more than the combined caps of USDT, BNB, ADA, DOGE, and XRP.
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Ethereum bucks the trend as market bigwigs set bearish tone 15

ETH 1 hour:

Ethereum’s Parabolic SAR stayed below the price candles: a situation that glowed positive for investors. A bullish uptick showed by the PSAR also elevated the immediate resistance to $2001. The Relative Strength Index re-entered the price zone and settled near the overbought zone. If the RSI’s parallel hold remains, ETH is in for a good price spell.

Even the Chaikin Money Flow indicator followed in the footsteps of the RSI after moving sinusoidally. Although the graph was a good distance away from the zero line, it would do well for the cryptocurrency to have more capital flowing in.

ETH 1 day:

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In the long term, Ethereum registered a slight improvement in sustained price holds. Although the support broke recently, the cryptocurrency showed signs of quick recovery to go past the $2000 mark. As it stands, Ethereum has to remain vigilant about the support that was formed in March.

The CMF in the long term dipped below the zero line. This phenomenon has occurred only twice since December of 2020, with the last two happening in the space of 40 days. If no brakes are applied on the capital leaving the market, Ethereum may be looking at a slow recovery.

Ethereum’s long-term RSI struggled to break away from the oversold zone but alas the bear’s pull remained strong. The RSI was at its lowest since the beginning of the year with analysts predicting a bull run to overturn the trend. Even the Parabolic SAR sided with the bear as the pressure accumulated below the price candles. This trend usually continues till the price capitulates during the upcoming market week.

Ethereum Slips below Support As Market Gets a Visit From Bear

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A bearish sweep over the weekend left the cryptocurrency market in a lurch as several of the top coins witnessed massive slashes on their market caps. Bitcoin, Ethereum, and the rest of the market all suffered double-digit falls in the last week with some of the more significant action coming from the altcoins.

Ethereum’s earlier upswing had resulted in a large influx of investors with a majority of them still HODLing through the price crunch. At the time of writing, Ethereum was trading for $2019 at a market cap of $234.01 billion. The previous week had pegged the cryptocurrency’s value down by 21 percent as the daily trading volume capitulated at $28.53 billion.

Ethereum 1 hour:

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The hourly charts had bad news for Ethereum as immediate support was broken on June 21. As of now, the immediate support and resistance clocked in at $1997 and $2638.3 respectively. Despite the dip, proponents of the cryptocurrency have been clamoring for more people to enter the Ethereum ecosystem.

A majority of the indicators in the following technical analysis pointed to a bearish signal weakening on the threshold. The Parabolic SAR was above the price of candles which was a sign of the bear’s hold on the market. Although the RSI had fallen below the oversold zone, the following capitulation was a positive sign for the investors. Only the Chaikin Money Flow indicator blinked green for Ethereum as it’s crossed the zero line into bullish territory.

Ethereum 1 day:

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Daily charts for Ethereum painted a bearish picture of Ethereum with a break in its 60-day price support. The current price support stands at $1997 with a hold missing in the immediate vicinity. Ethereum’s current price behavior is in tandem with the rest of the cryptocurrency market as billions have been wiped off the market.

The long-term RSI was heading towards the oversold zone as the number of users selling ETH overtook those buying into the market. According to the Parabolic SAR, Ethereum was heading for some more bearish tantrums in the near future. Unlike the hourly charts, the CMF was not forgiving in the long run. The CMF had fallen below the zero line which signified that the capital leaving the ETH market was higher than the influx.