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You are here: Home / Archives for ethereum futures

ethereum futures

Here’s Why Ethereum Could be Primed for Further Gains

September 2, 2020 by Reena Shaw

At a value of $462.18, Ethereum has climbed to levels not seen since July 2018. The incredible build-up was spun by the exploding popularity of decentralized finance [DeFI] as well as by the long-planned upgrade – Ethereum 2.0.

Ethereum’s rally has just begun and the following reasons indicate why the largest altcoin could see more gains in the coming days

Strong HODLing trend

Ether has enjoyed highs that that was last seen two years ago and the holders are anticipating a little more. This was evident from the latest Glassnode chart which showed that ETH held on exchanges has followed a consistent downtrend since mid-August. Conversely, the total supply held off exchanges has risen significantly. Meaning, holders were currently in an accumulation spree.

EgvLYHEXcAA iOq scaled

The upward price action has also resulted in the rise of mean transaction volume which climbed to a 5-month high of 0.236 ETH. Among other things, the number of active addresses has also increased substantially.

In addition, more than 93% of the current supply of ETH is now considered “in the money”. This was according to the charts of data analytic site, IntoTheBlock, which revealed that a significant chunk of addresses were in profit.

IntoTheBlock

More Calls are being bought versus Puts

skew eth putcall ratios

Gauging at the derivatives space, a sense of optimism was found to have taken over the traders. The decline in the put-call open interest ratio, which hit to a 3-month low, was indicative of this. According to the above Skew chart, the figures declined to 0.77 points which implied that the market is more bullish as investors were buying more calls in anticipation of a bull run ahead.

Bullish Futures Market

skew eth futures annualized  rolling 1mth basis

Another crucial indicator to understand the investor sentiment is by looking at futures markets premium to perpetual and swaps. The 3-month annualized premium appeared to be above 14%. Also, the 1-month futures contracts are trading above an annualized premium of 20%, indicating that buyers are betting that ETH’s spot price will surge in the near future.

Strong technicals

ETH e1598955383712

The technicals in ETH’s daily chart aligned with bullish momentum. Looking at the above chart, it can be noted that the daily moving averages acted as crucial support points for the ETH price candles from further decline. Interestingly, after undergoing a golden cross, the 50 DMA [Pink] has not only followed the price appreciation, but also the gauge with the 200 DMA [Purple] has risen, which was further indicative of an increasing positive price sentiment.

The RSI was well above the 50-median neutral zone but has so far not exhausted the buying pressure. This essentially depicted a bullish sentiment among the traders in the market.

Filed Under: Altcoin News, News Tagged With: DeFi, Ethereum (ETH), ethereum futures, Ethereum Options

Ethereum Price Surge Drives Ethereum futures Open Interest to a Record High

July 30, 2020 by Arnold Kirimi

For the first time in history, the gross figure of the open Ethereum’s futures contract eclipsed $1 billion, another sign of surging open interest in the second-largest cryptocurrency. The total value of all open bets in the value of Ethereum hit a new all-time high, as per data by blockchain analytics firm, Skew.

Ethereum futures

The new record comes as ETH ‘s price broke past the $300 price level and the imminent launch of Ethereum 2.0, which has boosted long-term investor trust in the potential of cryptocurrency. Future contracts refer to the consent of two participants to buy or sell a particular asset at a set price at a predetermined time in the future.

The buyers of the Ethereum futures contract anticipate the value of ETH will be different from the value of the contract before it is deployed, allowing for immediate proceeds upon completion of the commitment. Notably, the entities issuing futures contracts earn a fee referred to as premium, with the anticipation that the fee will be higher than the loss

Total Ethereum futures open interest surge by 30 percent

Total open interest in Ethereum futures surged by nearly 30 percent from June 20, from below $800 million to about $1.2 billion during press-time. Open interest is a very significant metric because it shows the fresh amount both issuers and traders have gambled in futures contracts before the expiry of the contract in the future.

Moreover, major crypto exchange OKEx is currently leading the pack with the most extensive Ethereum futures open interest of over $290 million. Crypto exchanges Huobi and BitMEX follow behind with $220 and $216 total open interest, respectively. In particular, Huobi recently revealed its plan to roll out Ethereum options trading later during Q3.

Ethereum leading the new market charge

Ethereum futures were surging earlier in the year, reaching almost $900 million before the coronavirus pandemic fears increased, and the further collapse of the U.S stocks market brought down the cryptocurrency market with it. The open interest in Ethereum futures crashed to below $400 by mid-March. However, the gross value of Ethereum futures open interest has been on a determined surge upwards since then.

The current momentum has been driven by the recent increase in the price of Ethereum. Nevertheless, the surging Eher future has more work to do if they match the king of the cryptocurrency futures contract, Bitcoin. Back on July 21, the open interest in bitcoin futures eclipsed the $4 billion mark. However, BTC futures contracts have raised at half the rate seen by Ethereum futures since the price began surging.

Filed Under: Market Analysis Tagged With: bitcoin future contracts, Bitcoin futures, cryptocurrency future contract, Ethereum (ETH), Ethereum 2.0, ethereum future contract, ethereum futures, future of ETH, Huobi, open interest

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