ETH briefly touches $3K but traders remain skeptical: Here’s why
Despite an 8% rebound, Ether stalled near $3,000 as derivatives markets show trader skepticism due to weak futures premiums and bearish options skew.Summary
Ethereum briefly rallied, touching $3,000, tracking a broader crypto surge fueled by expectations of less restrictive US monetary policy, including the Fed ending balance-sheet reduction and anticipated interest rate cuts. However, derivatives markets indicate persistent trader skepticism. The annualized premium on ETH monthly futures remains low at 3%, signaling weak demand for leveraged long positions, and the ETH options delta skew has shifted to a 6% premium for put options, suggesting bearish sentiment persists despite improving risk appetite in traditional markets.
Furthermore, Ether is underperforming stocks even as global policy turns expansionary, and network activity is waning; weekly fees dropped 49% due to decreased decentralized exchange (DEX) volumes, while rivals like Tron and Solana saw fee increases. An unusual transfer of 40,000 ETH by an old whale account also added to investor anxiety, suggesting limited conviction that ETH is positioned to outperform the broader crypto market.
(Source：Cointelegraph)