The price of ETH eventually cleared the $2,000 barrier, but can network usage and retail demand maintain the present positive momentum?
On November 9, ether saw an unexpected 8% increase that broke through the $2,000 barrier and reached its highest price point in six months.
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The announcement that BlackRock had registered the iShares Ethereum Trust in Delaware set off a rise that caused liquidations of $48 million in ETH short futures. On a social media platform, @SummersThings made the first announcement, which Bloomberg ETF experts subsequently verified.
Ethereum Hits 6-Month High with BlackRock Spot ETF Excitement,Ethereum Hits 6-Month High with BlackRock Spot ETF Excitement
The announcement raised hopes for a possible Ether spot ETF application from $9 trillion asset manager BlackRock. This conjecture coincides with BlackRock’s June 2023 iShares Bitcoin Trust registration in Delaware, one week before their first spot Bitcoin ETF filing.
Investors may have jumped the gun, too, given BlackRock’s absence of a formal comment. The asset manager’s overwhelming power in traditional finance puts those who are betting against Ether’s success in a risky situation.
Using derivatives, experienced traders made optimistic wagers on Ethereum.
It is important to examine the ETH derivatives metrics in order to comprehend the positions held by professional traders following the unexpected rally. Ether monthly futures often trade at an annualised premium of 5% to 10% above spot markets, implying that sellers are requesting more funds in order to delay settlement.
On November 9, the Ether futures premium reached its biggest level in more than a year, rising to 9.5%. On October 31, it crossed the 5% neutral threshold. A two-month stretch of bearishness and minimal demand for leveraged long bets ended with this move.
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Trader analysis of the Ether options markets is necessary to see whether the breach over $2,000 has sparked overconfidence. When traders expect a decline in the price of Bitcoin, the delta 25% skew usually rises beyond 7%, and during exciting times, it usually falls below minus 7%.
Ethereum Hits 6-Month High with BlackRock Spot ETF Excitement,Ethereum Hits 6-Month High with BlackRock Spot ETF Excitement,Ethereum Hits 6-Month High with BlackRock Spot ETF Excitement, Ethereum coin Crypto news, Ethereum coin News