Key points:
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ETH futures and options data show that although Ether’s price is 7 months, there are no signs of defensive positioning.
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Ether ETF inflows and corporate holding signals indicate increased beliefs among institutional investors.
Ether (Ethereth) Price fell 4% after briefly hitting $3,940 on Monday. This decline is consistent with the wider cryptocurrency market correction, which suggests that no ETH-specific factors triggered the move. Although some traders may be frightened, the ether derivatives remained stable, indicating a potential rally toward $5,000 remaining.
ETH traders cautiously forecast move to $5,000
Global markets remain concentrated on U.S. import tariff negotiations as analysts warn that failure to reach a deal could significantly increase recession risk. Despite a trade deal with Europe on Monday, China’s deadline is imminent. Therefore, traders seem to be more inclined to hold cash or distribute short-term bonds.
To evaluate whether trader sentiment changes with ETH’s callback, you can take a look Monthly futures Excellent quality. Under neutral conditions, this measure is usually 5% to 10% to compensate for longer settlement periods.
Currently, ETH Futures Premium is 8%, its highest level for nearly five months. Interestingly, this is still happening despite the 55% increase in ETH prices over the past three weeks. From a bullish standpoint, this shows that if ETH launches more than $4,000 with higher beliefs, traders still have room to use leverage.
To determine whether this trend is limited to the futures market, options skew indicators should be considered. The 30-day delta deviation crossed the 6% neutral line when large traders and market makers anticipate downside risks.
at present, Ether options The skew reflects a balanced expectation for price movements, compared to the 8% optimism a week ago. The fact that professionals did not turn into defense after ETH reached its highest level in seven months shows that whales and market makers continue to be confident.
The most important driver of ETH’s recent strength is the inflow of spot exchange-traded funds (ETFs). This makes ETH different from competing assets. Between July 11 and July 25, Ether ETFS released $4.23 billion Net inflowincreasing the total assets under management to US$17.24 billion.
According to StrategicEterreserve, more than 40 companies have at least 1,000 ETH in their company reserves, compared with a current price of $3.8 million. It is worth noting that companies including Bitmine Immersion Tech, Sharplink Gamesand the total holding of ETH worth $8.84 billion.
To see through the events, excluding strategy, only eight companies hold more than $1 billion worth of BTC on their balance sheets, led by Michael Saylor. Despite this trend relatively late, companies that adopt an ether-centric strategy gained traction at a very fast pace.
From the perspective of derivatives markets, ETH traders are still cautiously optimistic. As long as institutional demand is stable, the short-term relocation will still exceed $5,000.
This article is for general information purposes and is not intended to be considered legal or investment advice. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent Cointelegraph’s views and opinions.
