Understanding the Price Range
For the last twelve days, Ethereum (ETH) has been playing a game of tightrope, balancing on a price range between $1,910 and $2,150. It’s somewhat ironic, given that a 13% price swing caused a whopping $495 million liquidation in futures contracts since May 13. Clearly, the crypto rollercoaster continues! No wonder traders are clutching their wallets and wondering if they’ll ever see a bull run again.
The Outflow of Digital Asset Funds
Timing is everything. According to the latest report from CoinShare, the week ending May 20 was not favorable for crypto funds, which experienced a $141 million outflow. Obviously, investors were more inclined to send their hard-earned cash back in the direction of stable norms like a squirrel hiding its nuts for winter. Bitcoin (BTC) was in the hot seat here, taking the brunt of it with a $154 million net redemption.
Regulatory Shadows in Russia
As if the market needed another reason to sweat, Russian regulators announced a proposal that dropped key measures such as the crypto mining operators’ registry and tax amnesty. Reports from local media indicated that these changes could “possibly incur costs on the federal budget,” leaving investors uneasy. Talk about a buzzkill for the crypto party!
The Technology Market Influence
On May 24, the Nasdaq Composite Index took a 2.5% plunge, weighing heavily on tech-driven stocks. Social media darling Snap (SNAP) made headlines for a 40% dive, citing inflation and disrupted supply chains. As a ripple effect, Meta Platforms (FB) also fell by 10%. It’s like watching a row of dominoes fall—one after the other, right before our eyes!
Market Sentiment: Bearish Waves Ahead
On-chain data signals a wave of bearish sentiment, with active addresses on Ethereum’s decentralized applications (DApps) decreasing by a concerning 27%. Apps like Uniswap (UNI) and Curve (CRV) reported drops in users by 24% and 52% respectively. That doesn’t scream confidence, does it?
The Futures Market: What the Numbers Say
Let’s peek into Ether’s futures market. After all, what are professional traders and whales thinking? They typically prefer quarterly futures, which usually trade at a premium to spot markets. Unfortunately, the current premium has dipped below the 5% neutral threshold, indicating a lack of enthusiasm from buyers. It’s a subtle hint—a sign they might be playing the waiting game a bit longer.
Final Thoughts: Will There Be a Bull Run?
Though ETH experienced a slight gain recently, on-chain data coupled with futures market insights suggests persisting bearish trends. Without a morale boost in DApp usage and a premium recovery, the chances of breaking through that pesky $2,150 resistance seem slim.
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