Contrary to the price of Bitcoin, which has performed very well in recent days, Ethereum has failed to record a good performance of Bitcoin. However, many traders are optimistic about Ethereum’s good performance in the short term and the passing of this digital currency over $ 4,000.
to the Report Bitcoin Telegraph, Bitcoin performance has been 13% better than Ethereum since the beginning of this month; But it should not be forgotten that Ethereum has grown by 274% in 2021. Traders are now questioning whether Ethereum can successfully implement the stock consensus consensus. With the full launch of Ethereum 2.0, we will greatly reduce network problems such as high fees and prolong transaction approval.
On the other hand, the fact that platforms such as Solana and Olench have become serious competitors to Ethereum in the field of smart contracts has raised the concerns of traders.
An important issue that has resurfaced in recent days and weeks is the possibility of the Bitcoin Securities and Exchange Commission (ETF) being approved by the US Securities and Exchange Commission (SEC). Bitcoin traders look at this with a positive attitude. The US Securities and Exchange Commission is set to announce its decision in the coming weeks. Of course, there is also the possibility that the announcement of the decision will be postponed.
Status of Professional Traders
To understand how professional traders feel about the market, we need to look at futures futures. Premium futures is an indicator that calculates the difference between the price of futures and the price of assets in current markets.
Quarterly futures contracts are a favorite tool of whales and arbitrators. These types of contracts seem complicated for ordinary traders due to their maturity dates and price differences with futures markets. However, their main advantage is their low volatility funding rate.
Quarterly futures are generally traded at an annual premium of 5 to 15 percent. This figure changes in line with the stable coin lending rate. When a contract’s due date is delayed, the seller will ask for more money to sell the contract, which will lead to a price difference.
As you can see above, Ethereum’s failure to break the $ 3,600 resistance has not changed traders’ sentiment, and the premium rate has remained in the 13% range. This shows that there is currently no extra optimism in the market.
Retailers are usually more inclined to use overdue contracts. In such contracts, the contract fee is changed every eight hours to meet demand. To find out if there is an emotional sell-off in the market, we need to look at the funding rate of futures contracts.
In a neutral market, this rate varies between 0 and 0.03%. The fee is 0.6% on a weekly basis. In this case, the fees are paid by the holders of long-term contracts.
As of September 7, it has not been possible to determine the uptrend or downtrend of traders. This state of equilibrium shows that in addition to traders being less inclined to create long positions, there is not much emotional selling in the market.
Derivatives market data show that Ethereum investors are not worried about the digital currency performing worse against Bitcoin. In addition, the lack of high leverage after a 274% growth this year is a positive factor.
Overall, Ethereum traders are now hoping for a uptrend and breakout. In the meantime, obtaining licenses for tradable funds on the Bitcoin exchange can act as an accelerating factor.