The price of Ethereum increased by around 32% leading up to Monday, and despite combatting the resistance level of $3,000, it held. At the same time, Bitcoin was not able to sustain its resistance level of $50,000- while being in the short term. As stated by Cointelegraph, pro-traders haven’t yet been inclined to add more bullish positions according to the metrics of the derivatives.
Interestingly, the opposition situation has emerged when one were to look at the sentiment of the traders of Ether that have been showing a far more reasonable degree of confidence in the current level of price.
Spectacular NFT Growth Back Traders’ Confidence In Ethereum
One of the major commissioners at the Commodity Futures Trading Commission, Dawn Stump, has stated that a trading platform like Ethereum that offers derivatives to U.S. persons without registering, or in violation of the trading rules of CFTC- which falls under the enforcement authority of the CFTC.
It is pretty unclear why Ether’s and Bitcoin’s reaction to the news would be any further apart, but it is important to note that Dawn Stump is one of the only four members of the CFTC on panels that has the power to regulate mass commodities.
For the unfamiliar, the network of Ethereum has been one of the leaders in the NFT segment, and OpenSea, a single marketplace has already processed around $1 billion worth of transactions in the last month.
In order to understand how bearish or bullish professional traders are leaning, one needs to analyze the futures basis rate. The basis has been frequently referred to as the futures premium, and for Ethereum, it is measured using the difference between current spot market labels and longer-term futures contracts.