#Ethereum ($ETH ) Has Something 'Scary' Happening in Background...

The $ETH  price, which was last trading just under $1,550 after hitting new seven-month lows earlier this week at $1,520, is down a little over 7.5% for the month.

The world’s second-largest cryptocurrency by market capitalization is thus on course to post its third negative month in four, having now pulled back around 28% from April’s yearly highs close to $2,150.

A batch of Ether futures Exchange Traded Funds (#ETFs ) went live in the US last week, but despite a lot of hype, only managed to attract very weak trading volumes, suggesting institutions remain on the sidelines for now.

That shouldn’t be too much of a surprise given Ether future trading volumes have been shrinking sharply now since March.

As per data presented by The Block, Ether future trading volumes were only around $250 billion in September, down from around $770 billion in March.

And it’s not just trading data that suggests fading demand.

Various on-chain metrics such as active users, number of transfers, total transfer volume and new addresses have been stagnating now for some time.

That has culminated recently low gas fees and the Ether supply turning inflationary.

As per Glassnode, the Ether supply was last just over 119.98 million, up from under 119.9 million in late August.

Demand for Ether staking had been a bright spot for the token this year.

But ETH staking yields are currently consistently below 4%, as opposed to closer to 5% for long-term US government bonds.

These bonds are considered a risk-free asset, so investors may continue to prefer parking their cash in the safe haven bond market, rather than risking it with Ether for a lower yield.

DISCLAIMER-

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