{"id":257669,"date":"2021-05-24T19:54:14","date_gmt":"2021-05-24T16:54:14","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/wishy-washy-bulls-turn-bearish-on-ethereum-price-despite-positive-data\/"},"modified":"2021-05-24T19:54:14","modified_gmt":"2021-05-24T16:54:14","slug":"wishy-washy-bulls-turn-bearish-on-ethereum-price-despite-positive-data","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/wishy-washy-bulls-turn-bearish-on-ethereum-price-despite-positive-data\/","title":{"rendered":"#Wishy-washy bulls turn bearish on Ethereum price despite positive data"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a41364dbc393\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a41364dbc393\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/wishy-washy-bulls-turn-bearish-on-ethereum-price-despite-positive-data\/#What_caused_the_change_in_sentiment\" >What caused the change in sentiment?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Wishy-washy bulls turn bearish on Ethereum price despite positive data<\/strong>&#8221;<\/p>\n<p style=\"float:right;margin:0 0 10px 15px;width:240px\"><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvOWE3NWM5NDUtN2MzMC00NWZlLTkwNzAtOGZmNjNhYTdiNjU5LmpwZw==.jpg\" class=\"type:primaryImage\"><\/p>\n<pre><code>                A few months ago traders were uber bullish on ETH at $2,100, so why are they bearish now that the altcoin trades for the same price? \n                &lt;p&gt;Ether's (ETH) futures premium has gone through a complete cycle, from April's extreme euphoria to the present level, which is the most bearish in six months.\u00a0\n<\/code><\/pre>\n<p>Believe it or not, in both situations, Ether&#8217;s price was roughly $2,100. This change shows how investors&#8217; mood depends on a few weeks&#8217; performances and holds no relation to longer timeframes.<\/p>\n<p>By analyzing the futures markets&#8217; price difference versus regular spot exchanges, traders can better understand how the price move has impacted professional traders. Typically, the 3-month futures should trade with an 8% to 15% annualized premium, comparable to the stablecoin lending rate. By postponing settlement, sellers demand a higher price, causing the price difference.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/3386b031-fc8e-4ba3-8ced-091015997dde.png\" \/><figcaption style=\"text-align: center\"><em>OKEx 3-month Ether futures annualized premium. Source: Skew<\/em><\/figcaption><\/figure>\n<p>On April 13, the Ether futures premium peaked at 47%, indicating extreme optimism. Ether had rallied 36% to a $2,150 all-time high on April 2, and euphoria settled in as it surpassed the $2,200 resistance. At the same time, the decentralized finance (DeFi) net value locked reached $50 billion, and analysts painted a $10,000 target for year-end.<\/p>\n<p>The bull run was also fueled by EIP-1559 expectations, a proposal that could result in Ether being burned at a rate exceeding the creation of new supply.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/2fdc0a5e-1763-4fa7-bcb2-7c22b114a9ef.png\" \/><figcaption style=\"text-align: center\"><em>Ether \/ USD at Coinbase. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>On April 17, a 20% crash took place, causing a $1 billion long futures liquidation. That number represented 12.5% of the outstanding contracts, reducing the 3-month futures premium to 25%. This optimistic level carried on as Ether recovered the $2,500 mark.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_caused_the_change_in_sentiment\"><\/span>What caused the change in sentiment?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On April 25, Ether initiated a 100% rally that took the price to $4,170 in just 17 days. One would expect the 3-month premium to have soared above 40%, but that did not h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en. Somehow, longs were less likely to use excessive leverage compared to the previous month. Traders seemed skeptical of the surprising rally above $3,000 and therefore avoided leverage longs.<\/p>\n<p>On May 19, as Ether posted a 45% flash crash down to $1,870, the futures premium finally abandoned its optimistic level and moved below 16%. The futures premium remained relatively steady at 17% even as Ether&#8217;s price crashed 30% between May 12 and May 17. From what the data shows, most traders refused to believe that the trend had reversed and kept opening leveraged long positions despite the $2.8 billion liquidations.<\/p>\n<p>Ether futures finally completed the entire cycle as the futures premium went below 8% on May 21, marking a bearish sentiment. It is worth noting that this level was unseen since early November 2020.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-05\/19529d8c-7b93-44af-bcf0-967e9e592559.png\" \/><figcaption style=\"text-align: center\"><em>Ether futures aggregate open interest, USD. Source: Bybt<\/em><\/figcaption><\/figure>\n<p>The chart above shows just how short-sighted traders are as Ether&#8217;s price is 450% above the $380 seen in November 2020. The futures open interest soared from $1 billion to the current $5.4 billion. Moreover, daily active addresses on the network rose from 550,000 to 750,000.<\/p>\n<p>As things currently stand, there isn&#8217;t a single metric pointing to worsening fundamentals compared to 6 months ago. <\/p>\n<p>However, investors seem unable to display bullishness due to the recent 56% correction in 12 days. The lesson here is that investors should &#8216;zoom out&#8217; instead of blindly trusting short-term market indicators and sentiment.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/wishy-washy-bulls-turn-bearish-on-ethereum-price-despite-positive-data\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Wishy-washy bulls turn bearish on Ethereum price despite positive data&#8221; A few months ago traders were uber bullish on ETH at $2,100, so why are they bearish now that the altcoin trades for the same price? &lt;p&gt;Ether&#8217;s (ETH) futures premium has gone through a complete cycle, from April&#8217;s extreme euphoria to the present level, which&#8230;<\/p>\n","protected":false},"author":1,"featured_media":257670,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDUvOWE3NWM5NDUtN2MzMC00NWZlLTkwNzAtOGZmNjNhYTdiNjU5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-257669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/257669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=257669"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/257669\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/257670"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=257669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=257669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=257669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}