• Latest
ethereum derivatives data shows pro traders are bearish, but for how long?

Ethereum derivatives data shows pro traders are bearish, but for how long?

April 17, 2022
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Ethereum

Ethereum derivatives data shows pro traders are bearish, but for how long?

coinnewsdaily by coinnewsdaily
April 17, 2022
in Ethereum, Trading
0
ethereum derivatives data shows pro traders are bearish, but for how long?
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

It was April 11 when Ether (ETH) lost the psychological support level of $3,000 after a 16 percent drop in weekly performance.
On April 11, $104 million worth of leveraged long futures were sold. Bulls were shocked.
Ether’s downturn was also caused by a drop in the total value (TVL) of Ethereum smart contracts.

Altcoin
Ethereum network TVL in ETH. Source: Defi Llama

The metric hit a high of 40.6 million Ether on January 27, and has since dropped by 22%.
This could be part of the reason why Ether couldn’t handle the bad news that came with Bitcoin’s (BTC) 13 percent weekly decline.

Related articles

5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022

Even so, the most popular altcoin has its own set of reasons why it’s on the rise. Ethereum developers made the first “shadow fork” of the network on April 11.
People who work on Bitcoin can now stress-test their ideas about the complicated transition from proof of work to proof of stake on the testnet, which was updated.

As a result, one needs to look at how professional traders are putting their money. There’s no better way to figure this out than by looking at derivatives markets.

The futures premium is back to bearish levels

To figure out if the current bearish trend is based on the opinions of the most important traders, one should look at the price of Ether’s futures contracts, which is called the “basis.”
Unlike a perpetual contract, these fixed-calendar futures do not have a funding rate. This means that their prices will be very different from those of regular spot exchanges.

When a trader looks at how much it costs to buy and sell futures, they can get a sense of how people in the market are feeling.
As sellers ask for more money to hold off on paying, a neutral market should show a premium of between 5% and 12% each year.

Altcoins
Ether 3-month futures premium. Source: laevitas.ch

The above chart shows that between March 25 and April 6, the futures premium for Ether was above the 5% neutral threshold. It then dropped to 3%.
Futures market traders don’t want to open leveraged long (buy) positions at this level because they don’t want to lose money.

Long-to-short data confirms worsening conditions

The long-to-short net ratio of the top traders doesn’t take into account any outside factors that might have affected the longer-term futures instruments.
When you look at these whale positions on the spot, long-term, and futures contracts, you can figure out if professionals are actually going to be bearish.

Binance
Exchanges’ top traders Ether long-to-short ratio. Source: Coinglass

There are a lot of methodological differences between different exchanges, so the absolute numbers don’t mean as much as they used to.
There has also been a big drop in the long to short ratio of every major derivatives exchange since April 5.

People who make a lot of money are betting more money on the stock market going down.
There was a 1.05 long-to-short ratio on April 5, but by the end of the month, that ratio had dropped to 0.88.
Also, the top traders on the OKX changed their position from 2.11 to 1.35.

Are investors and users abandoning the network?

According to the metrics above, there might not be a sign of extreme bearishness. However, the futures basis rate and the long-to-short ratio of the top traders both got worse over the last week.

TVL in Ethereum smart contracts also shows that people aren’t making smart contracts anymore.
Investors may be paying less attention to the proof-of-stake migration because of all the delays. Decentralized finance (DeFi), gaming, and nonfungible (NFT) projects may be moving to other networks because of this.
To make things even worse for Ether, traders have been paying more attention to altcoins that have a better chance of making money than Ether.

The author’s thoughts and opinions are entirely his or her own and do not necessarily reflect those of CoinNewsDaily. Each investing and trading action entails risk; before making a decision, you should conduct your own research. 

Tags: AltcoinAltcoinsBinanceBitcoinBTCBullishCointelegraphcontractsDecentralized financeDeFiETHEtherEthereumethereum developersEveryExchangesfinanceForkGaminginIndicatorInvestmentLongMajorMarket sentimentMoneynetworkNFTNotOpenPerpetualpricerequestTestnettotaltraderTradingUseWHALEWill
Share76Tweet47
Previous Post

Ripple case: How will it affect XRP 2022 price?

Next Post

Pro traders know it’s time to range trade when this classic pattern shows up

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
things you should know before investing in nfts
Alt Coin

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?
Bitcoin

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?
Alt Coin

What is the future of Ethereum (ETH)?

April 22, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum
Alt Coin

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
btc and eth will break all time highs in 2022 — celsius ceo
Bitcoin

BTC and ETH will break all-time highs in 2022 — Celsius CEO

April 21, 2022
Load More
Next Post
Pro traders know it’s time to range trade when this classic pattern shows up

Pro traders know it's time to range trade when this classic pattern shows up

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin

Subscribe to Get More!

Loading
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$23,000.000.78%
  • ethereumEthereum(ETH)$1,644.490.97%
  • tetherTether(USDT)$1.00-0.13%
  • binancecoinBNB(BNB)$330.621.38%
  • rippleXRP(XRP)$0.3971840.09%
  • cardanoCardano(ADA)$0.389734-0.24%
  • dogecoinDogecoin(DOGE)$0.091447-0.67%
  • matic-networkPolygon(MATIC)$1.244.15%
  • okbOKB(OKB)$44.330.49%
  • solanaSolana(SOL)$23.421.08%
  • shiba-inuShiba Inu(SHIB)$0.000014-3.86%
  • polkadotPolkadot(DOT)$6.720.96%
  • litecoinLitecoin(LTC)$99.473.76%
  • tronTRON(TRX)$0.0644291.73%
  • daiDai(DAI)$1.00-0.11%
  • cosmosCosmos Hub(ATOM)$14.733.18%
  • chainlinkChainlink(LINK)$7.051.48%
  • ethereum-classicEthereum Classic(ETC)$22.62-0.03%
  • leo-tokenLEO Token(LEO)$3.37-6.71%
  • moneroMonero(XMR)$167.581.17%
  • bitcoin-cashBitcoin Cash(BCH)$133.300.87%
  • stellarStellar(XLM)$0.0906570.38%
  • filecoinFilecoin(FIL)$5.362.80%
  • crypto-com-chainCronos(CRO)$0.0806730.19%
  • algorandAlgorand(ALGO)$0.2720595.87%
  • vechainVeChain(VET)$0.0244823.09%
  • internet-computerInternet Computer(ICP)$5.682.51%
  • aaveAave(AAVE)$87.031.71%
  • eosEOS(EOS)$1.080.66%
  • theta-tokenTheta Network(THETA)$1.156.29%
  • elrond-erd-2MultiversX(EGLD)$45.853.33%
  • tezosTezos(XTZ)$1.171.00%
  • paxos-standardPax Dollar(USDP)$1.00-0.56%
  • havvenSynthetix Network(SNX)$2.8714.23%
  • huobi-tokenHuobi(HT)$5.50-1.06%
  • bitcoin-cash-svBitcoin SV(BSV)$43.09-1.44%
  • pancakeswap-tokenPancakeSwap(CAKE)$4.542.11%
  • dashDash(DASH)$63.753.23%
  • iotaIOTA(MIOTA)$0.2439220.50%
  • makerMaker(MKR)$727.886.56%
  • neoNEO(NEO)$8.922.63%
  • zcashZcash(ZEC)$45.734.81%
  • zilliqaZilliqa(ZIL)$0.0298344.93%
  • basic-attention-tokenBasic Attention(BAT)$0.281131-0.90%
  • compound-governance-tokenCompound(COMP)$55.486.01%
  • nemNEM(XEM)$0.0415872.28%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • kusamaKusama(KSM)$36.181.28%
  • bitcoin-goldBitcoin Gold(BTG)$17.170.63%
  • qtumQtum(QTUM)$2.861.69%
  • sushiSushi(SUSHI)$1.473.41%
  • wavesWaves(WAVES)$2.754.92%
  • yearn-financeyearn.finance(YFI)$7,752.262.87%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • golemGolem(GLM)$0.252322-1.31%
  • omisegoOMG Network(OMG)$1.66-4.72%
  • ontologyOntology(ONT)$0.231566-0.52%
  • digibyteDigiByte(DGB)$0.0111807.36%
  • umaUMA(UMA)$2.143.85%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%