{"id":351907,"date":"2021-10-12T22:35:00","date_gmt":"2021-10-12T19:35:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/traders-pin-ethereums-route-to-new-ath-to-eventual-bitcoin-etf-approval\/"},"modified":"2021-10-12T22:35:00","modified_gmt":"2021-10-12T19:35:00","slug":"traders-pin-ethereums-route-to-new-ath-to-eventual-bitcoin-etf-approval","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/traders-pin-ethereums-route-to-new-ath-to-eventual-bitcoin-etf-approval\/","title":{"rendered":"# Traders pin Ethereum\u2019s route to new ATH to eventual Bitcoin ETF approval"},"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-6a3e84eacf1d4\" 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-6a3e84eacf1d4\" 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\/traders-pin-ethereums-route-to-new-ath-to-eventual-bitcoin-etf-approval\/#Pro_traders_are_unfazed_by_the_recent_price_stagnation\" >Pro traders are unfazed by the recent price stagnation<\/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\/traders-pin-ethereums-route-to-new-ath-to-eventual-bitcoin-etf-approval\/#Retail_traders_have_been_neutral_for_the_past_five_weeks\" >Retail traders have been neutral for the past five weeks<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Traders pin Ethereum\u2019s route to new ATH to eventual Bitcoin ETF <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>roval  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Ether (ETH) price is lagging Bitcoin&#8217;s (BTC) price action by 13% in October, but is this relevant? To date, the altcoin has still outperformed BTC by 274% in 2021. However, traders tend to be short-sighted and some will question whether the Ethereum network can successfully migrate to proof of stake (PoS) validation and finally solve the high gas fees issue.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-10\/6f3b8a91-3143-4a61-9151-5b96fd45fe94.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin and Ether prices at Bitstamp. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Moreover, the increasing competition from smart contract networks like Solana (SOL) and Avalanche (AVAX) have been worrying investors:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">One big problem with the \u201cETH is ultra sound money\u201d meme is that EIP-1559 only limits the supply of ETH if Ethereum continues to have lots of transactions. It\u2019s just as possible that people will tire of $80 gas fees and opt for one of numerous alternatives (SOL, AVAX, etc).<\/p>\n<p>\u2014 dennis in SF \/\/ OP_CTV (@pourteaux) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/pourteaux\/status\/1446515472548208668?ref_src=twsrc%5Etfw\">October 8, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to Cointelegraph, the recent speculation over the possible approval of a Bitcoin exchange-traded fund (ETF) raised traders&#8217; appetite for BTC. The U.S. Securities and Exchange Commission (SEC) is expected to announce its decision on multiple ETF requests over the next couple of weeks. However, it remains a possibility that the regulator will postpone these dates.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Pro_traders_are_unfazed_by_the_recent_price_stagnation\"><\/span>Pro traders are unfazed by the recent price stagnation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To determine whether professional traders are leaning bearish, one should start by analyzing the futures premium \u2014 also known as the basis rate. This indicator measures the price gap between futures contract prices and the regular spot market.<\/p>\n<p>Ether&#8217;s quarterly futures are the preferred instruments of whales and arbitrage desks. These derivatives might seem complicated for retail traders due to their settlement date and price difference from spot markets, but their most significant advantage is the lack of a fluctuating funding rate.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-10\/366d3f64-87a5-4236-954b-d4efb2a5a9d0.png\"><figcaption style=\"text-align: center;\"><em>Ether three-month futures basis rate. Source: Laevitas.ch<\/em><\/figcaption><\/figure>\n<p>The three-month futures typically trade with a 5% to 15% annualized premium follows the stablecoin lending rate. By postponing settlement, sellers demand a higher price, and this causes the price difference.<\/p>\n<p>As depicted above, Ether&#8217;s failure to break the $3,600 resistance has not caused a shift in pro traders&#8217; sentiment because the basis rate remains at a healthy 13%. This shows that there is no excessive optimism at the moment.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Retail_traders_have_been_neutral_for_the_past_five_weeks\"><\/span>Retail traders have been neutral for the past five weeks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Retail traders tend to opt for perpetual contracts (inverse swaps), where a fee is charged every eight hours to balance the leverage demand. To understand if some panic selling occurred, one must analyze the futures markets funding rate.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-10\/44034707-a494-4b64-ac80-454cc3f77223.png\"><figcaption style=\"text-align: center;\"><em>Ether perpetual futures 8-hour funding rate. Source: Bybt<\/em><\/figcaption><\/figure>\n<p>In neutral markets, the funding rate tends to vary from 0% to 0.03% on the positive side. This fee is equivalent to 0.6% per week and indicates that longs are the ones paying it.<\/p>\n<p>Since Sept. 7, there hasn&#8217;t really been any indication of high leverage demand from either bulls or bears. This balanced situation reflects retail traders&#8217; lack of appetite for leverage long positions, but at the same time shows little panic selling or excessive fear.<\/p>\n<p>Derivatives markets show that Ether investors are not worried about the recent underperformance versus Bitcoin. Furthermore, the lack of excessive long leverage after a 274% gain year-to-date should be positively portrayed.<\/p>\n<p>By leaving some room for bullishness without compromising the derivatives market structure, Ether traders seem prepared for a rally above its all-time high, especially if a Bitcoin ETF is approved.<\/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<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\/traders-pin-ethereum-s-route-to-new-ath-to-eventual-bitcoin-etf-approval\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Traders pin Ethereum\u2019s route to new ATH to eventual Bitcoin ETF approval &#8221; Ether (ETH) price is lagging Bitcoin&#8217;s (BTC) price action by 13% in October, but is this relevant? To date, the altcoin has still outperformed BTC by 274% in 2021. However, traders tend to be short-sighted and some will question whether the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":351908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTAvOGFlYzA0MmMtMWRmNS00N2Y2LWI2ZTYtOTM4ZjljZTc0MjE2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74863,74860,75012,82402,74891,81210,75846,74939,73785,70934],"class_list":["post-351907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-ether-price","tag-ethereum","tag-ethereum-options","tag-futures","tag-market-analysis","tag-markets","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/351907","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=351907"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/351907\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/351908"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=351907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=351907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=351907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}