One can determine market sentiment using a variety of varied indicators. Among them, we can see the interest that is had in the derivatives of some cryptocurrency, and in the case of ETH, the scenario is somewhat discouraging. Even though Ethereum’s EIP-1559 update is on the way, traders are not showing as much enthusiasm for ETH as might be expected. At least not in the short term.
The hard fork is scheduled for July, and its main proposal, dubbed EIP-1559, will cap Ethereum’s gasoline fees. This is why ETH price action in June could be related to dissatisfied miners as the network migrates out of Proof of Work.
Even though ETH had a nearly 200% surge in the first half of 2021 versus Bitcoin’s modest 22% price surge, optimism is higher regarding BTC.
What data do you have on the low optimism about ETH?
In addition to the diminished interest in ETH derivatives, the flow of institutional money into the cryptocurrency also decreased. Specifically, ETH investment vehicles suffered record outflows recently of $ 50 million. In contrast, Bitcoin flows began to stabilize.
Uncertainties are on the rise for ETH investors. Perhaps miners supporting a competitive chain of smart contracts or some other unexpected turn of events could further negatively affect the price of Ether.
However, a 4% to 8% premium on December ETH futures contracts should be sufficient to offset those effects. However, when futures trade below this range, it indicates that there is short-term bearish sentiment. While the overall market sentiment is neutral to bearish, it seems sensible to predict a more discouraging scenario for Ether. The uncertainties of the transition to Proof-of-Stake (POS) play an interesting role here.
A stronger drop in Bitcoin could also hit altcoins. Considering that the cryptocurrency has been showing a neutral bearish trend, it is one more uncertainty to add to the list. As of this writing, ETH is worth $ 2,101, down 1.20% in the last 24 hours according to CoinDesk. Also, according to TradingView, there are currently 11 technical signals from the last 24 hours that indicate a latent sell signal in the ETH market.