Ethereum Setting The Stage?
https://decrypt.co/107003/ethereum-traders-preparing-buy-sell-mergeThis is an interesting Article, that can show some support on why ETH is moving.
Some Key factors here:
- Investors are Expecting a " Merge " So expect a " Buy On Rumor Sell on News "
- " Backwardation " indicated across both Eth Options and Futures markets
- Eth Options Open Interest passes Bitcoin first time in histroy.
1) Eth Merge
A very important Date to be watching out for, In the Week of September 19th, 2022 we can be seeing some major movements for ETH! When prices are moving which side are you going to be one?
2) Backwardation
We All know that Crypto Currencies have Markets that contain Extreme Amounts of Volitility, The Derivatives Futures Market & And Spot Market both hold the same assets, but the Purchasing Power is what creates the difference.
In the Derivatives Futures Market, Traders can Leverage Their trade 100x and "hold" An extremely high amount of Fake Coins. These fakes coins are Paper Coins written down on a contract to leverage the trades Trade. This can have a very damaging effect on an asset, as we all can see.
But now that we are getting word of Backwardation, which is when the price of the Spot price is higher than the futures price, ETH can create True Value.
3) Eth Options Open Interest
There are many Options puts and Calls but the Calls are smaller than the Puts. A call is when a trader can buy an assets when it hits a certain price if they choose to, Puts are when a trader can sell an asset when it hits a certain price, if they choose to.
Now this is important because the first time in history, ETH Passes Bitcoin Open interest with 6.6 billion.
