ETH bulls unmoved by surprise sell-off below $3.7K: Here’s why
Despite a 9.5% drop below $3,700, Ether bulls show cautious positioning, suggesting limited expectation for a deeper bearish move.Summary
Ether (ETH) experienced an unexpected 9.5% correction, dropping below $3,700 and causing $232 million in liquidations, fueled by broader risk-off sentiment stemming from US regional bank credit concerns. Derivatives data indicates moderate unease, with the 25-delta skew for options rising due to increased demand for downside protection (puts). However, the ETH monthly futures premium fell only slightly to 4%, suggesting traders are avoiding heavy leverage. Furthermore, top traders on exchanges like Binance have maintained or increased their long exposure despite the price weakness, indicating that while confidence in a swift rally to $4,500 is subdued, major players are not betting on a significant further decline. The market's recovery hinges on clearer signals regarding credit conditions and US labor market data.
(Source：Cointelegraph)