As per the ETH derivatives, the price of Ether is going sideways for 27 days in a row, however, traders who are pro are not convinced about the support of $2,500. The investors of ETH are facing a hard time this year with Ether facing a 25% loss till 17th March.
As Per ETH Derivatives, Ethereum’s $2.5K support Worries Traders
There have been multiple instances where the rate of cryptocurrency has increased to nearly $2,500 in the past, showing a strong support system. Tim Beiko, the developer of Ethereum, on 15th March, declared that the kiln testnet also previously known as Ethereum 2.0 has passed the Merge successfully.
The entire process of Merge includes taking the layer of Execution in Ethereum from its pre-existing PoW layer and affiliating it with the layer of Consensus from the Beacon Chain. The ultimate objective is to convert the blockchain into a network of PoS. On 16th March, the Federal Open Market Committee (FOMC) of the United States has increased the rate of interest by 0.50%, which is the first-ever move from 2018.
As per ETH Derivatives, a warning came from the authorities of the money that pressed on the issue of rising inflation and stated that it must be solved by the digital scarcity immediately. In case the rate is increased even more by the FOMC, the risk market will face a negative impact.
The position of professional traders is understood by studying the future of Ether and the data of the options market. The primary indicator is used to analyze the difference between the recent spot market levels and future contracts of longer terms. Ether’s future should have an annualization premium between 5% to 12% and below this range, it will become bearish. Furthermore, as per the ETH derivatives, if the traders are fearing a crash in the price of Ether, then the skew indicator will go above 10%.