Ether prices fell 6% between March 19 and March 21 after destroying the $ 2,050 resistance level. More particularly, ETH has fallen 28% since February 21, down 14% over the same period.
Despite ETH’s price struggle, Ether Future Open Interest set recorded on March 21. As a result, traders questioned whether large -scale investors had positioned potential rally for $ 2,400, raising concerns about the risk of liquidation.
Ether Gift Contribution Concerns, ETH. Source: COINGLASS
According to the CoingLass data, Chicago, Gate.io and Bitget recorded 12.3 million ETH on March 21, with an open interest in aggregate on March 21 over two weeks. According to the CoingLass Data, Chicago Mercantile Exchange (CME) has 9%of ETH public interest. This contrasts with Bitcoin futures, which CME leads to a 24%market share.
The demand for leverage ETH LONG has decreased.
The increase in the activity of ETH futures contracts generally indicates the interests of institutional investors because public interest measures the demand for leverage. However, since buyers and sellers (shorts) always match, the increase in public interest does not inherently show positive prospects.
To measure whether the buyer is looking for more leverage, the analyst must find the exchange rate by comparing the ETH futures monthly contract price. In the neutral market, these derivatives generally make a transaction of 5% to 10% higher every year to explain the extended payment period. If the trader turns weak, the premium will fall below the range.
Ether Futures Annual Premium for 2 months. Source: LAevitas
The annual premium for ETH monthly gifts dropped to less than 4% on March 21 and decreased from 5% two weeks ago. The decrease in Future Premium has reduced incentives for traders to use the “cash and carry” strategy, which sells spot eth to sell futures contracts and capture insurance premiums with fixed income transactions.
Spot ETF leakage and reduced network rate pressure ETH price
Part of the decrease in ether was weakened in demand for US -based ether exchange transaction funds (ETFs), and net leaks were $ 378 million for two weeks until March 20. The macroeconomic environment also weakened investor trust as economists warned of the economic recession risk due to global tariffs, inflation pressure and US government cuts.
However, some analysts argue that Ether’s recent price weakness is from the interests of network rates (network fees required to compensate for validation), DAPPS (Decentralized Applications) and Layer -2 Scale Solutions. This criticism is perfectly summarized by Martin Köppelmann, co -founder of GNosis.
source: Koeppelmann
In a sense, the introduction of a successful shift from Ether Leeum’s understanding of understanding and the introduction of a blove space to improve the scalability through rollups is also considered a factor that limits the price growth of ether. Despite the low trading costs of the Layer-2 solution, some ethical investors don’t think they are receiving appropriate rewards.
The price of ether faces pressure from macroeconomic risks, and the demand for DAPP continues to decrease as competition is fierce or attracting investors’ attention. Ether Lee’s basic tier sales dropped to $ 605,000 on March 17 and dropped sharply from $ 2.5 million just two weeks ago.
There is no evidence that the surge in ETH FUTURES is led by strong positioning. On the contrary, the demand for long positions for leverage is noticeably weak, suggesting cautious market feelings.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.