The main dishes to remember:
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ETH -term and options show no signs of defensive positioning despite the price of 7 months of Ether.
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ETHER ETHER entries and business assets report an increasing conviction of institutional investors.
The price of ether (ETH) fell 4% after briefly touched $ 3,940 on Monday. This drop has aligned on the wider correction of the cryptocurrency market, which suggests that no specific factor in ETH has triggered this decision. While some traders may have been frightened, ether derivatives have remained stable, indicating that a potential rally around $ 5,000 remains on the table.
ETH merchants cautiously predict the move to $ 5,000
The global markets remain focused on the negotiations on the import prices of the United States, as analysts warn that non-compliance with an agreement could significantly increase the risk of recession. Despite a trade agreement concluded with Europe on Monday, the deadline for China was looming on August 12. As a result, traders seem more inclined to keep money or allocate short -term obligations.
To assess whether the feeling of traffic moved after the withdrawal of ETH, the monthly term premium can be examined. Under neutral conditions, this metric generally varies from 5% to 10% annualized, compensating for the longer payment period.
Currently, the ETH Futures Premium is 8%, its highest level in almost five months. Interestingly, this happens despite an increase in prices of 55% of the ETH in the last three weeks. From a bullish point of view, this suggests that traders still have room to apply the lever effect if ETH exceeds $ 4,000 with more conviction.
To determine if this trend is limited to the term markets, the bias metric of options must be taken into account. When large traders and market manufacturers anticipate the risk of decline, the 30 -day Delta bias exceeds the neutral line by 6%.
Currently, the bias of the Ether options reflects balanced expectations for the price movement, unlike the 8% optimism observed a week earlier. The fact that professionals have not become defensive after ETH reached its highest level in seven months of signals continued the confidence of whales and market manufacturers.
The most important engine of ETH’s recent force has been the negotiated funds on ether (ETF). This distinguishes ETH competing assets. Between July 11 and 25, Ether ETF posted $ 4.23 billion in net entries, lifting the total assets listed in the United States under management at $ 17.24 billion.
According to StrategiceThreve, more than 40 companies hold at least 1,000 ETH in business reserves, equivalent to $ 3.8 million at current prices. In particular, companies like Bitmin Immersion Tech, Sharplink Gaming and the Ether machine collectively hold $ 8.84 billion in Eth.
To put things in perspective, excluding the strategy, the listed company in the United States led by Michael Saylor and the Bitcoin extraction conglomerates, only eight companies hold more than a billion dollars in BTC on their balance sheets. Although they are relatively late to this trend, companies that adopt a strategy focused on ether are gaining ground at a remarkably rapid pace.
With a view of the derivative market, ETH traders remain cautiously optimistic. As long as institutional demand is stable, depression greater than $ 5,000 in the short term remains a realistic scenario.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.