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Friday, July 1, 2022

Ethereum Traders Aren’t That Concerned About The Weakness

Most traders of Ethereum are seemingly disinterested in the low prices that the cryptocurrency has been posting over the last 50 days. If the downtrend manages to continue, the lower trendline does indicate that the altcoin will be bottoming out at $3,600. Still, the data from derivatives is signaling that most of the pro traders are not that concerned about the exceedingly bearish market structure that has come to the fore. 

Ethereum Weakness Hasn’t Baffled Traders

Ethereum has come under major fire in Russia, with the Governor of the Central Bank, Elvira Nabiullina, stating that banning any form of cryptocurrency in the country is quite plausible. Nabiullina went on to cite the use of illegal operations as well as the risks taken by retail investors that crypto endorses.

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The President of the country, Vladimir Putin has also gone on record criticizing the cryptocurrency in usage in the country by stating that they haven’t been backed by anything in particular. 

In the American markets, it has been noticed that post the sharp decrease after the intraday crash of 24% on the 3rd of December led to the annualized futures premium reaching its lowest level over the last two months. After the initial panic that took place, the futures market of Ether then went on to recover its initial level of 9%, which is quite close to the neutral range. 

It has also been noticed that the total value locked for the network of Ethereum in smart contracts has doubled over the last six months to reside at $148 billion. This data does give derivative traders the confidence that is needed to remain calm even under the current short-term price weakness that could rip the crypto apart.

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