Ethereum (ETH) 12-hour closing prices have respected the narrow range of $ 1,910 to $ 2,150 over 12 days, but strangely, these 13% fluctuations are future contracts after May 13th. Was enough to settle a total of $ 495 million. From a coin glass.
The deterioration of market conditions was also reflected in digital asset investment products. Cryptocurrencies and investment products were seen to flow out $ 141 million in the week ending May 20th, according to the latest edition of CoinShare’s Weekly Digital Asset Fund Flow Report. In this case, Bitcoin (BTC) was the focus of investors after experiencing $ 154 each week for net redemption.
Russian regulation and collapsing US tech stocks exacerbate the situation
Regulatory uncertainty has put pressure on investor sentiment after an updated version of the Russian mining bill was revealed on May 20. Documents from the House of Representatives of the Russian Parliament did not include the obligation to register as a crypto miner or the one-year tax. pardon. As quoted by local media, Duma’s legal department said these measures “could cost the federal budget.”
Additional pressure on Ether prices came from a 2.5% drop in the Nasdaq Composite Index on May 24th. In addition, after the social media platform Snap (SNAP) fell 40%, tech stock-led indicators were under pressure and labor turmoil due to rising inflation and supply chain constraints. As a result, the share of Meta Platforms (FB) decreased by 10%.
On-chain data and derivatives favor bears
The number of active addresses for Decentralized Applications (DApps) on the largest Ethereum network decreased by 27% from the previous week.
The most active decentralized applications on the network have significantly reduced users. For example, Uniswap (UNI) V3’s weekly addresses decreased by 24%, while Curve (CRV) faced 52% fewer users.
Take a look at Ether’s futures market data to understand how professional traders, whales and market makers are positioned.
Quarterly futures are mainly used by whales and arbitrage desks because they do not have variable funding rates. These fixed-month contracts usually trade at a small premium to the spot market. This indicates that the seller will demand more money to withhold payment for a longer period of time.
These futures should trade at an annual premium of 5% to 12% in a healthy market. This situation is technically defined as “contango” and is not limited to the crypto market.
Related: Bitcoin prices return to weekly lows of less than $ 29,000 as Nasdaq leads the US stock plunge
Ether’s futures contract premium fell below the 5% neutral market threshold on April 6. The current 3% basis index remains depressed, so there is a clear lack of confidence from leveraged buyers.
After testing $ 1,910 channel resistance on May 24, Ether could have risen by 2%, but on-chain data show no user growth and derivative data is bearish centimeters. Shows the ment.
There are morale improvements that encourage the use of decentralized applications, and it seems unlikely that the price will exceed the $ 2,150 resistance until Ether Futures Premium regains a neutral level of 5%.
The views and opinions expressed here are author It does not necessarily reflect the views of Cointelegraph. All investment and transaction movements carry risks. When making a decision, you need to do your own research.