Ethereum’s $1.5K support falls as ETH traders become slightly bearish
Data from ETH derivatives shows that bulls are less inclined to defend the current price, which creates an opportunity for more downside. Market Analysis Buy this piece of history. Collect this article as a NFT. The price of Ether (ETH), fell 10.2% between Jan. 8 & 10, and has been trading in a range of $1,500 since then. Importantly, Ether has fallen 52.5% in 12 months. This partially explains why derivatives metrics are somewhat neutral following Ether’s failure to break $1700 on February 8. Blish joined a growing list of people in crypto industry calling for transparency and regulation in crypto sector. A blog post from February 10 stated that the transition is necessary to allow withdrawals from validators staking positions. According to a blog post on February 10, the transition is required to allow validators to withdraw from their staking positions. Retail traders tend to avoid quarterly futures due the price difference with spot markets. These instruments are preferred by professional traders because they avoid the fluctuation in funding rates in perpetual futures contracts. Source: Laevitas.ch Source: Laevitas.chThe chart above shows that derivatives traders tend to be more bearish as the Ether futures premium fell below the 4% threshold. Bears can rejoice that the indicator failed not to show a modest premium despite Ether testing $1,700 on February 8. The absence of demand for leverage longs does not necessarily mean that there is no expectation of adverse price action. The skew indicator is lower than usual in bullish markets, which means that the demand for bearish put options is lower. Source: Laevitas.chThe delta-skew crossed the 10% mark on February 14, signaling professional traders’ stress. That is a stark contrast from late January when the 25% skew index hovered near 2% — indicating similar upside and downside risks.Ultimately, both options and futures markets point to pro traders moving to a neutral-to-bearish sentiment, displaying moderate discomfort after the $1,700 price rejection.Consequently, the odds favor Ether bears because the hostile regulatory environment tends to amplify the adverse effects of FUD — whether or not it directly impacts the Ethereum network’s adoption and use cases.The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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