Now that Ether’s (ETH) price broke the $2,000 level, hitting all-time highs this week, traders became excessively bullish and are expecting more upside in the short-term.
Some analysts believe Visa’s initial USD Coin (USDC) stablecoin transaction settlement on the Ethereum network kicked off the most recent rally. Others attribute the current Ether hike to a “triangle market structure” breakout.
Regardless of the cause behind the recent 25% rally, professional traders seem highly optimistic this time around. This conclusion can be reached by looking at the surging futures’ basis, which has reached its highest level ever.
This movement brings increased risks of cascading liquidations due to excessive buyer leverage, but professional traders seem confident, as shown by the delta skew indicator.
Ether (ETH) price at Coinbase, USD. Source: TradingView
Investors could be anticipating the protocol improvement proposal EIP-1559 set to go live in July, which aims to fix the surging gas fees. The upgrade intends to use flexible block sizes instead of the current Title: 38% Ethereum futures premium signals traders anticipate $2,500 ETH
Sourced From: cointelegraph.com/news/38-ethereum-futures-premium-signals-traders-anticipate-2-500-eth
Published Date: Sat, 03 Apr 2021 10:00:00 +0100
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