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Will the price of ETH follow as Ethereum futures premium reaches a 1-year high?

Will the price of ETH follow as Ethereum futures premium reaches a 1-year high?

ETH Rallies Alongside Bitcoin as Derivatives Metrics Show Bullish Sentiment

– Ether (ETH) has seen a decline of 14.7% since its peak in April, but derivatives metrics suggest investors are feeling bullish.

– The surge in enthusiasm among ETH derivatives investors may be due to the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the US.

– The ongoing amendments to spot Bitcoin ETF proposals are seen as a positive sign of progress and impending approvals.

– The upcoming Dencun upgrade for Ethereum, scheduled for the first half of 2024, is also contributing to investor optimism.

– The upgrade will enhance data availability for layer-2 rollups and reduce transaction costs, preparing the network for future implementation of sharding.

– Ethereum competitors are facing challenges with high costs and processing capacity bottlenecks, leading to unexpected issues.

– Despite the negative performance of ETH, the Ether futures premium has reached its highest level in over a year, indicating growing demand for leveraged long positions.

– The options market also shows bullish sentiment, with the 25% delta skew reaching its lowest level in over 12 months.

– Traders may be expecting approval for Ether spot ETF instruments and banking on planned upgrades to reduce transaction costs and eliminate the competitive advantage of other blockchain networks.

Summary:

– ETH has declined since its peak in April, but derivatives metrics suggest bullish sentiment among investors.

– The potential approval of a spot Bitcoin ETF in the US and the upcoming Dencun upgrade for Ethereum are contributing to investor optimism.

– Ethereum competitors are facing challenges with high costs and processing capacity.

– The Ether futures premium and options market indicate growing demand for leveraged long positions and bullish sentiment.

– Traders may be expecting approval for Ether spot ETF instruments and banking on planned upgrades to reduce transaction costs and eliminate competition.

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