Thursday, November 21, 2024

Ethereum Futures Point to Growing Bearish Sentiment

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Alicia Garcia
Alicia Garciahttps://blog.cryptoapa.com/
Alicia is excited about all things tech. She devotedly follows blockchain and crypto updates, sharing her passion through writing about it. She is a regular contributor for cryptocurrency news and articles.

Recent data reveals diminishing enthusiasm for Ethereum in perpetual futures markets, even as ETH 2.0 deposits reach record highs. This divergence highlights potential concerns about Ethereum’s near-term outlook.

Despite the milestone of over 28,019 ETH locked in the ETH 2.0 contract, Ethereum’s open interest on Binance perpetual futures plunged to a 13-month low of $1.28 billion. The declining open interest indicates waning confidence among futures traders.

Meanwhile, Ethereum’s active supply between 1-3 million recently hit its lowest level in a month at 9.66 million ETH. The shrinking active supply points to less market liquidity and fewer short-term holders.

Even as Ethereum transitions to proof-of-stake, perpetual futures activity reflects doubts about immediate gains. ETH prices keep descending, now at $1,650 with a 2.26% 24-hour drop, despite record staking deposits.

The milestone of staked ETH rings hollow when contrasted with bearish perpetual futures and dwindling active supply. For Ethereum to regain its momentum, it may need stronger fundamental drivers to revive futures appetite. Otherwise, ETH could continue drifting lower in the near-term.

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