Ethereum market speculation heats up, who decides the rise and fall of ETH?
With increased speculation, whether Ethereum rises or falls depends entirely on how traders position themselves.
Recently, there has been a surge in speculative activities, and Ethereum's reserves on derivatives exchanges have soared, reaching a new high in over a year.
The number of open contracts is also increasing, as traders are guessing the future price of Ethereum.
Ethereum [ETH] has recently lagged behind Bitcoin [BTC] and other popular altcoins, having fallen 6% in the past seven days, now priced at $3123.
Why the decline? It’s simply due to insufficient demand and aggressive sellers, failing to break through resistance levels.
However, looking at the derivatives market, opinions are not unified. ETH's speculative activity has been the hottest in months, with traders preparing for future price trends.
The ETH reserves on derivatives exchanges have reached a new high in several months, totaling 11.28 million, the highest in over a year.
What does this indicate? Retail investors are engaging in leveraged trading of ETH, all guessing the future price of ETH.
Also, looking at the supply ratio on derivatives exchanges, it’s at 0.09, meaning 9% of Ethereum's circulating supply is on derivatives exchanges.
This indicator is at its highest since April, showing that market activities have changed, and derivatives trading now has a significant short-term impact on Ethereum's price.
If ETH's price suddenly changes, with more leveraged trading, forced liquidations could lead to even more price instability. The rise and fall depend on how traders position themselves.
Ethereum's open contracts have hit a new historical high, reaching $18.31 billion, as seen on Coinglass. Since the beginning of this month, open contracts have risen by over $4 billion.
Now, let’s look at the predictions for Ethereum [ETH] prices in 2024-2025.
The open contract interest rates have risen, and the financing rates are still positive, indicating that bulls outnumber bears, with everyone expecting a bullish trend.
However, Market Prophit’s data suggests that overall market sentiment is still bearish, and demand may remain weak, making a bull market recovery somewhat difficult.
If you can't seem to find the right timing and feel confused about how to operate, and want to learn to keep up, you must meet one condition: strong motivation, take action immediately, like + comment, and I’ll help you make big money!
