ETH falls below $ 3800 but traders are unwilling to short current levels as the network has increased its smart contract deposits ninefold but a sinking channel continues to put pressure on the price. So let’s read more in today’s Etheruem price news.
Although ETH hit an all-time high of $ 4,870 and the bulls have little reason to celebrate. The growth of 290% in the year to date was overshadowed by a price decline of 18%. However, the network value locked in smart contracts has increased ninefold to the level of $ 155 billion. If you look at the price action over the past few months, that doesn’t really tell the whole story, and Ether’s current market cap makes it one of the 20 largest tradable assets in the world behind the two-century Johnson and Johnson conglomerate.
Ether Perpetual Futures 8-hour financing rate. Source Coinglass.com
In 2021, the growth of decentralized exchanges should be remembered, the daily volume of which reached $ 3 billion, or 340% growth from the last quarter of the year, but crypto traders are still short-sighted, emphasizing the impact of the current downtrend channel. To understand the bear market it has installed one needs to analyze the funding rate of the futures. Perpetual contracts, also known as inverse swaps, have an embedded interest rate that is calculated every eight hours and these measures are put in place to avoid imbalances in exchange rate risk, so the positive funding rate suggests that buyers are demanding more leverage.
The reverse situation occurs when shorts require additional leverage and this can cause the funding rate to go negative. The eight hour charge rained near zero in December, which only suggests balanced leverage demand from buyers and sellers, and if there had been moments of panic it would have been reflected in these indicators. Data provided by the exchange highlights traders’ long to short positioning, and by analyzing the client’s on-site positions, the perpetual and futures contracts can also provide a better understanding of whether professional traders are going bullish or bearish.
EtherUSD price at FTX. Source TradingView
There is some discrepancy in methodology between different exchanges, so viewers should watch the changes instead of the numbers. Despite the fact that ETH is falling below $ 3800, traders at OKEX, Huobi, and Binance have increased their leverage longs. Binance was the only exchange that faced a slight reduction in the odds of top traders. The number rose from 0.98 to 0.92, but that impact was more than offset by OKEX traders who increased their bullish bets from 1.67 to 3.20 within a week.
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