Traders Hope Ethereum Will Rise To $3000
Ethereum is up 35% in the past ten days and regained critical support at $2,300.
By analyzing the difference in price between futures contracts and regular spot markets, you can better understand the market sentiment.
In the above chart, you can see that on July 20, the Ether futures premium turned negative and ETH tested the $1,750 support. But the rise to $2,450 was not enough to push the September contract premium above 1.3%, the equivalent of 8% year over year. Now the position of professional traders seems to be neutral.
Option markets also confirm that professional traders are not optimistic.
Whenever market makers and whales are bullish, they will demand a higher premium on call options. This move will result in a negative offset of the 25% delta slope indicator.
However, when the put option becomes more expensive, the 25% delta variance indicator will turn positive.
Currently, prices in the options markets are well-balanced between call and put options.
Both derivatives indicators suggest that professional traders gradually emerged from the “fear mode” on July 20, but they are far from optimistic.