ETH has risen 34% in two weeks, but the chart shows significant negative dangers; investors are unlikely to complain about a price gain. When looking at Ether’s (ETH) current price chart, for example, one would infer that the rising channel that has been in place since March 15 is too aggressive. As a result, traders are understandably concerned that losing the $3,340 support might result in a retest of the $3,100 level or a 12 percent decline below $3,000. Of course, how traders position themselves and the Ethereum network’s on-chain measures play a big role.
For starters, the total value locked (TVL) of the Ethereum network peaked at ETH 32.8 million on January 23; it has subsequently fallen by 20%. Decentralized finance (DeFi), gambling, NFT markets, social networks, collectibles, and high risk all use TVL to track the number of coins placed on smart contracts.
Furthermore, the Ethereum network’s average transaction price peaked at $8 on March 16 before rising to $15. As a result, it’s important to determine if this indicates a lower use of decentralized apps (DApps) or users who benefit from layer-2 scaling solutions.
The Premium on Ether Futures
To learn how professional traders are positioned, traders can examine Ether futures market data.
The basics indicator measures the gap between longer-term futures contracts and current spot market values. The yearly premium on Ether futures should be between 5% and 12% to compensate traders for “locking in” their money for two to three months until the contract expires. The current Ether futures basis of 6% is just beyond the neutral market’s minimal threshold. A bearish annualized futures premium is less than 5%, while a bullish annualized futures premium is greater than 12%.
This data indicates that professional traders are not too enthusiastic. Still, there has been a 4 percent or lower basis rate in recent months, indicating a gloomy mood. As a result, there has been some improvement, but not enough to trigger a surge in buyer desire.