Wednesday, August 17, 2022

Ethereum futures premium hits a 7-month low as ETH tests the $2,400 support By Cointelegraph

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© Reuters

Ether (ETH) reached a $3,280 local high on Feb. 10, marking a 51.5% recovery from the $2,160 cycle low on Jan. 24. That price was the lowest in six months, and it partially explains why derivatives traders’ main sentiment gauge plummeted to bearish levels.

Ether’s futures contract annualized premium, or basis, reached 2.5% on Feb. 25, reflecting bearishness despite the 11% rally to $2,700. The worsening conditions depict investors’ doubts regarding the network’s shift to a proof-of-stake (PoS) mechanism.

Ethereum network total value locked, in ETH. Source: DefiLlama
Ether futures 3-month annualized premium. Source: Laevitas