{"id":329806,"date":"2021-08-24T23:50:37","date_gmt":"2021-08-24T20:50:37","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/derivatives-data-shows-ethereum-traders-positioned-to-extend-the-eth-rally\/"},"modified":"2021-08-24T23:50:37","modified_gmt":"2021-08-24T20:50:37","slug":"derivatives-data-shows-ethereum-traders-positioned-to-extend-the-eth-rally","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/derivatives-data-shows-ethereum-traders-positioned-to-extend-the-eth-rally\/","title":{"rendered":"# Derivatives data shows Ethereum traders positioned to extend the ETH rally"},"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-6a2781007125c\" 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-6a2781007125c\" 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\/derivatives-data-shows-ethereum-traders-positioned-to-extend-the-eth-rally\/#Regulatory_pressure_and_spectacular_NFT_growth_back_traders_confidence_in_Ether\" >Regulatory pressure and spectacular NFT growth back traders confidence in Ether<\/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\/derivatives-data-shows-ethereum-traders-positioned-to-extend-the-eth-rally\/#Pro_traders_are_neutral-to-bullish_according_to_futures_markets\" >Pro traders are neutral-to-bullish according to futures markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/derivatives-data-shows-ethereum-traders-positioned-to-extend-the-eth-rally\/#Options_traders_have_been_flirting_with_%E2%80%98greed\" >Options traders have been flirting with &#8216;greed&#8217;<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Derivatives data shows Ethereum traders positioned to extend the ETH rally  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Ether (ETH) price rallied 32% leading up to August 23, and despite testing the $3,000 support multiple times, the level has held firmly. Meanwhile, Bitcoin (BTC) could not sustain the $50,000 mark, at least in the short-term. According to Cointelegraph, pro traders are not yet inclined to add bullish positions according to derivatives metrics.<\/p>\n<p>Surprisingly, the opposite situation emerges when looking at the sentiment of Ether traders who currently show a reasonable degree of confidence in the current price level.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Regulatory_pressure_and_spectacular_NFT_growth_back_traders_confidence_in_Ether\"><\/span>Regulatory pressure and spectacular NFT growth back traders confidence in Ether<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On Monday, Dawn Stump, a commissioner at the Commodity Futures Trading Commission (CFTC), stated that: <\/p>\n<p>&#8220;A trading platform that offers derivatives on digital assets to U.S. persons without registering, or in violation of CFTC trading rules, is subject to the CFTC&#8217;s enforcement authority.&#8221;<\/p>\n<p>It is unclear why Bitcoin&#8217;s and Ether&#8217;s reaction to the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> would be any different, but it is worth noting that commissioner Stump is only one of four to six CFTC members on panels that regulate commodities.<\/p>\n<p>Meanwhile, payment processor giant Visa surprised the NFT market, announcing a $150,000 CryptoPunk acquisition. Cuy Sheffield, the head of crypto at the $500 billion market cap company said: <\/p>\n<p>&#8220;With our CryptoPunk purchase, we&#8217;re jumping in feet first. This is just the beginning of our work in this space.&#8221;<\/p>\n<p>For those unfamiliar, the Ethereum network is the absolute leader in the NFT segment, and a single marketplace called OpenSea has processed more than $1 billion worth of transactions in the past 30 days.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/cbde767d-2281-4b15-88d7-5908242595fb.png\"><figcaption style=\"text-align: center;\"><em>Ether (ETH) price in USD at Kraken. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/ETHUSD\/?exchange=KRAKEN\"><em>TradingView<\/em><\/a><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Pro_traders_are_neutral-to-bullish_according_to_futures_markets\"><\/span>Pro traders are neutral-to-bullish according to futures markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To understand how bullish or bearish professional traders are leaning, one should analyze the futures basis rate. The basis is also frequently referred to as the futures premium, and it measures the difference between longer-term futures contracts and the current spot market levels.<\/p>\n<p>A 5% to 15% annualized premium is expected in healthy markets, in a situation known as contango. This price difference is caused by sellers demanding more money to withhold settlement longer.<\/p>\n<p>However, this indicator fades or turns negative during bearish markets and flashed a red flag known as &#8216;backwardation&#8217;.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/1aaae206-0ce6-4790-929f-6232e3a6eea0.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin 3-month futures annualized basis. Source: laevitas.ch<\/em><\/figcaption><\/figure>\n<p>As depicted above, the current 11% annualized premium is neutral but much better than one month ago when the metric held below 5%. Nevertheless, a healthy market does not need excessive optimism from pro traders, which usually ends with excessive leverage longs and a basis rate above 15%.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Options_traders_have_been_flirting_with_%E2%80%98greed\"><\/span>Options traders have been flirting with &#8216;greed&#8217;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To exclude externalities specific to the futures instrument, one should also analyze options markets.<\/p>\n<p>The 25% delta skew compares similar call (buy) and put (sell) options. The metric will turn positive when fear is prevalent as the protective put options premium is higher than similar risk call options.<\/p>\n<p>The opposite holds when market makers are bullish, causing the 25% delta skew indicator to shift to the negative area. Readings between negative 8% and positive 8% are usually deemed neutral. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-08\/8be6efa4-ab8c-4be3-a54e-0c827153c7be.png\"><figcaption style=\"text-align: center;\">Deribit ETH options 25% delta skew. Source: Laevitas<\/figcaption><\/figure>\n<p>Notice how Ether option traders have been flirting with the &#8216;greed&#8217; level since Aug. 7 when the indicator dropped below the negative 8 threshold. This data validates the futures contract premium, which has improved over the past couple of weeks and is currently sustaining a healthy &#8216;neutral&#8217; level.<\/p>\n<p>Derivatives data shows the pro traders that are more active on quarterly futures and Ether options trading sitting comfortably at the time of writing.<\/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 News 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\/derivatives-data-shows-ethereum-traders-positioned-to-extend-the-eth-rally\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Derivatives data shows Ethereum traders positioned to extend the ETH rally &#8221; Ether (ETH) price rallied 32% leading up to August 23, and despite testing the $3,000 support multiple times, the level has held firmly. Meanwhile, Bitcoin (BTC) could not sustain the $50,000 mark, at least in the short-term. According to Cointelegraph, pro traders&#8230;<\/p>\n","protected":false},"author":1,"featured_media":329807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDgvMjhmYzVlOTYtMzY0OC00MDU3LWIxYmUtOGEwYTYyNDYxYTRjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74863,75012,74891,81210,74938,74939,95118,73785],"class_list":["post-329806","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cryptocurrencies","tag-derivatives","tag-ethereum","tag-ethereum-options","tag-ethereum-price","tag-market-analysis","tag-nft","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/329806","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=329806"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/329806\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/329807"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=329806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=329806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=329806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}