Ethereum (ETH) At The End of the Horn? - - Financial Market Media No. 1 in the World Ethereum (ETH) At The End of the Horn? Ethereum (ETH) At The End of the Horn?

July 1, 2021

Ethereum (ETH) At The End of the Horn?

 Based on the data presented, the average investor is not confident that Ethereum (ETH) will be bullish even though the asset recorded a jump of almost 200% in the first quarter of 2021.

At the same time, institutional flows are weakening especially for Ether derivatives. CoinShares revealed the Ether fund posted a record outflow of $ 50 million last week.

Perhaps the London hard fork and EIP-1559 scheduled for July will boost ETH prices. But in June, the asset failed to move positively when compared to Bitcoin (BTC), a gap of 16% despite a broadcast announcement last February.

More worrying is that Ether’s premium futures for December showed a record below 4%-8%. Worse, it failed to be driven by a 3.5% increase in December BTC futures.

For a healthy market, quarterly futures should be traded at a premium exchange up to normal. In addition to exchange risk, traders ‘lock in’ funds by postponing settlement. Due to that the premium of 4% to 8% for December contracts is enough to offset the effect.

Even if the futures fail to trade within that range, it indicates short -term bearish sentiment.

Not only that, a 30% decline in Bitcoin in the future will probably lead to a double -digit collapse in the price of altcoins.

While not sure how far Bitcoin will decline, ADVFN chief financial analytics executive Clem Chambers predicts Bitcoin will plummet to $ 20,000.