Price Insights: Following Blackrock’s filing of an application for the Spot ETH Exchange Traded Fund (ETF), the price of Ethereum (ETH) broke over the illusive $2,000 resistance last week.
The tendency of ETH traders to keep LONG positions caused the Ethereum Funding Rates to soar to an all-time high of 0.034%.
Investors have poured more money into Ethereum Futures contracts in the derivatives market.
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The price of Ethereum surged beyond $2,100 last week following Blackrock’s filing of an application for Spot ETFs. In the upcoming weeks, on-chain analysis investigates how this can affect ETH price movement and trading patterns.
Ethereum’s Future: BlackRock ETF Potential Drive to $3,000 Price,Ethereum’s Future: BlackRock ETF Potential Drive to $3,000 Price
The price of ether started to rise again, heading for the $2,150 4-month high. Investors are demonstrating a significant propensity to wait out for potential future profit opportunities, as seen by recent shifts in ETH trading patterns.
Approval of the Blackrock ETF Could Create a $7.8 billion window for arbitrage
After news of Blackrock’s proposed ETH Spot ETF application surfaced on November 9, the price of Ethereum shot up to $2,150. The $1,900 support area has been strongly guarded by the bulls ever since.
Like the previous BTC ETF proposal, BlackRock’s ETH ETF application is anticipated to help Ethereum gain institutional acceptance and capital allocation.
It’s interesting to note that Ethereum’s price performance surpassed Bitcoin’s following the announcement on November 9; in only one day, the ETH/BTC exchange rate increased by 10%.
Some institutions may respond to this by moving money they had previously staked on Bitcoin to Ethereum in an effort to potentially increase profits.
Data from Coinglass’s derivatives trading indicates that the ETH Futures markets have drawn an unusual amount of capital inflows, supporting this position.
The graph below shows how, soon after Blackrock’s application, Ethereum’s open interest increased to 20% and reached $7.75 billion. Interestingly, November 10’s Open Interest of $7.75 billion was the second-highest amount of the year.
The whole amount of money invested in live or outstanding ETH futures contracts is measured by open interest. An rise in Open Interest generally indicates that more investors are contributing money to the Ethereum futures markets, which is a bullish indication.
Given that investors could now try to take advantage of any arbitrage possibilities in the $7.75 billion futures market, ETH Open Interest is probably going to continue its rising trend.
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Market fund trading possibilities will increase as a result, and funding rate arbitrage and short-term long and short strategy rewards will be amplified.
Ethereum Bulls Are Paying Record High Fees in the Hope of Future Profits
On-chain data from Glassnode appears to confirm a possible ETH arbitrage window, as ETH traders are paying record fees to maintain their bullish holdings.
In reaction to recent market-moving events, Ethereum investors have drastically altered their trading habits, as seen in the chart below. The ETH Perpetual Funding Rate peaked on November 10 and November 12, respectively, at 0.034%.
Ethereum’s Future: BlackRock ETF Potential Drive to $3,000 Price,Ethereum’s Future: BlackRock ETF Potential Drive to $3,000 Price,Ethereum’s Future: BlackRock ETF Potential Drive to $3,000 Price , Ethereum coin Crypto news, Ethereum coin News