{"id":287980,"date":"2021-07-01T00:45:00","date_gmt":"2021-06-30T21:45:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/heres-why-pro-traders-expect-further-downside-from-ethereum-price\/"},"modified":"2021-07-01T00:45:00","modified_gmt":"2021-06-30T21:45:00","slug":"heres-why-pro-traders-expect-further-downside-from-ethereum-price","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/heres-why-pro-traders-expect-further-downside-from-ethereum-price\/","title":{"rendered":"# Here&#8217;s why pro traders expect further downside from Ethereum price"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a292034132a9\" 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-6a292034132a9\" 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\/heres-why-pro-traders-expect-further-downside-from-ethereum-price\/#Ethers_December_futures_premium_shows_weakness\" >Ether&#8217;s December futures premium shows weakness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/heres-why-pro-traders-expect-further-downside-from-ethereum-price\/#Another_leg_down_will_do_even_more_harm_to_altcoins\" >Another leg down will do even more harm to altcoins<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Here&#8217;s why pro traders expect further downside from Ethereum price  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Derivatives data shows that Ether (ETH) traders are feeling less bullish when compared to Bitcoin (BTC). Even though the altcoin captured a nearly 200% gain in the first half of 2021 versus Bitcoin&#8217;s modest 22% price increase, traders seem to be more affected by Ether&#8217;s recent underperformance.<\/p>\n<p>Institutional flow also backs the decreased optimism seen in Ether derivatives, as ETH investment vehicles suffered record outflows this past week while Bitcoin flows began to stabilize. According to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/coinshares\/vol-35-digital-asset-fund-flows-weekly-f14e35f4e9c3\">data from CoinShares<\/a>, Ether funds experienced a record outflow of $50 million this past week.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/5c59081f-abf3-4e93-9197-61c085d596cf.png\"><figcaption style=\"text-align: center;\"><em>Ether (orange) versus Bitcoin (blue) prices. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Take notice of how Ether is underperforming Bitcoin by 16% in June. The London hard fork is scheduled for July, and its core proposal \u2014 dubbed as EIP-1559 \u2014 will cap Ethereum&#8217;s gas fees. Therefore, the price action could be related to unsatisfied miners as the network migrates out of Proof-of-Work (PoW).<\/p>\n<p>For this reason, Ether investors have reason to fear because uncertainties abound. Perhaps miners supporting a competing smart-contract chain or some other unexpected turn of events could further negatively impact Ether price.<\/p>\n<p>Whatever the rationale for the current price action, derivatives indicators are now signaling less confidence when compared to Bitcoin.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ethers_December_futures_premium_shows_weakness\"><\/span>Ether&#8217;s December futures premium shows weakness<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In healthy markets, the quarterly futures should trade at a premium to regular spot exchanges. In addition to the exchange risk, the seller is &#8216;locking up&#8217; funds by deferring settlement. A 4% to 8% premium in the December contracts should be enough to compensate for those effects.<\/p>\n<p>A similar effect occurs in almost every derivatives market, although cryptocurrencies tend to present higher risks and have higher premiums. However, when futures are trading below this range, it signals that there is short-term bearish sentiment.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-06\/59a80e34-f846-41ce-83fb-675874f4cf4d.png\"><figcaption style=\"text-align: center;\"><em>OKEx BTC (blue) vs. ETH (orange) December futures premium. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The above chart shows the Bitcoin December futures premium recovering to 3.5% while Ethereum contracts failed to follow. While both assets displayed a neutral-to-bearish indicator, there&#8217;s evidence that the altcoin investors are less optimistic about a short-term recovery.<\/p>\n<p><strong>Related: <\/strong><strong><em>Key Bitcoin price indicator flashes its &#8216;fifth buy signal in BTC history.&#8217;<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Another_leg_down_will_do_even_more_harm_to_altcoins\"><\/span>Another leg down will do even more harm to altcoins<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Another thesis that could negatively impact Ether&#8217;s premium is the impact of a potential negative 30% performance from Bitcoin. Filbfilb, an independent market analyst and the co-founder of the Decentrader trading suite, said that a 30% crash in the Bitcoin could prompt altcoins to drop twice as hard.<\/p>\n<p>Clem Chambers, the chief executive of the financial analytics website ADVFN, also predicted another potential leg down, which would repeat the late-2018 crypto winter period. Chambers claims Bitcoin could capitulate and fall back towards $20,000.<\/p>\n<p>While the overall market sentiment is neutral-to-bearish, it seems sensible to predict a more daunting scenario for Ether, including uncertainties from the transition to Proof-of-Stake (POS).<\/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><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\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>\n<\/p><\/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\/here-s-why-pro-traders-expect-further-downside-from-ethereum-price\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Here&#8217;s why pro traders expect further downside from Ethereum price &#8221; Derivatives data shows that Ether (ETH) traders are feeling less bullish when compared to Bitcoin (BTC). Even though the altcoin captured a nearly 200% gain in the first half of 2021 versus Bitcoin&#8217;s modest 22% price increase, traders seem to be more affected&#8230;<\/p>\n","protected":false},"author":1,"featured_media":287981,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDYvN2Q1MGY0ZWItMGViNC00NmM1LTkwMjItOGFjMzdlMjA0ZjI4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,81209,74937,74863,74860,75012,82402,74891,75846,74939,73785],"class_list":["post-287980","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-options","tag-bitcoin-price","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-ether-price","tag-ethereum","tag-futures","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/287980","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=287980"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/287980\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/287981"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=287980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=287980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=287980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}