Ethereum

2024

bullish

<p>At Ethereum, the situation is tense. Despite a recent rebound of 15%, the ETH crypto struggles to sustainably break through the $4,000 mark, a symbolic and psychological barrier. However, not everything is bleak for this flagship altcoin. The futures market on Ethereum, which is breaking records, reveals intriguing prospects. So, are these signals indicating a bullish recovery or merely a complex institutional strategy? Decoding the numbers and trends.</p> 
<h2 id="h-les-futurs-sur-ethereum-explosent-mais-attention-aux-interpretations">Futures on Ethereum explode, but beware of interpretations</h2> 
<p><a href="https://www.cointribune.com/tag/ethereum-eth/" target="_blank" rel="noreferrer noopener">Latest Ethereum news</a>: the ETH futures market has reached an all-time high, with <strong>open interest reaching $22 billion</strong>, a <strong>23%</strong> increase in one month. <a href="https://cointelegraph.com/news/ether-futures-open-interest-hits-all-time-high-is-the-eth-bull-run-starting" target="_blank" rel="noreferrer noopener">This explosion</a> reflects a growing demand, primarily concentrated on platforms like Binance, Bybit, and OKX, which control 60% of this activity. </p>
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     <p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> CME Futures open interest hit an all-time high. <a href="https://t.co/gtmvcJd5Wc">pic.twitter.com/gtmvcJd5Wc</a></p>— Kate The Alt (@kate_young_ju) <a href="https://twitter.com/kate_young_ju/status/1861634767059575123?ref_src=twsrc%5Etfw">November 27, 2024</a>
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<p>However, the Chicago Mercantile Exchange (CME), with $2.5 billion, indicates a <strong>rise in institutional investors</strong>.</p> 
<p>This development could be seen as a sign of maturity for Ethereum’s crypto, but caution: a strong interest in derivatives does not automatically signify a bullish market. Complex strategies abound:</p> 
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 <li><strong>Cash and Carry</strong>: <a href="https://www.cointribune.com/comment-acheter-de-l-ethereum-2/" target="_blank" rel="noreferrer noopener">buy Ethereum</a> spot and sell futures contracts to secure gains;</li> 
 <li><strong>Arbitrage on expirations</strong>: exploit rate differences between long and short contracts;</li> 
 <li><strong>Institutional hedge</strong>: hedge against adverse movements.</li> 
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<p>Despite a 17% annualized premium on two-month contracts, a sign of measured optimism, these mechanisms show that <strong>demand for leverage can also mask neutral</strong> or even bearish positions.</p> 
<h2 id="h-les-traders-crypto-amateurs-entre-espoirs-et-risques-eleves">Amateur crypto traders: between hopes and high risks</h2> 
<p>Individual investors, often dubbed “degens”, are betting big on Ethereum. Their <strong>appetite for leverage that can reach 20x</strong> exposes them to rapid liquidations. Between November 23 and 26, <strong>$163 million in long ETH positions were liquidated</strong> after a moderate decline of 5%.</p> 
<p>A key indicator for assessing market health remains the funding rate of perpetual contracts. Currently at 2.1% per month, it hovers at a neutral level. Despite a rise to 4% on November 25, <strong>retail demand for long positions remains subdued</strong>. This apparent calm could be hiding caution in the face of risks, as well as a lack of confidence in a true recovery.</p> 
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<p>But Ethereum has not said its last word yet. If the second-largest crypto by market cap surpasses key resistances, particularly between $4,000 and $6,000, the $10,000 mark becomes a plausible ambition. With complex institutional strategies and a cautious renewed interest from retail investors, ETH might one day <a href="https://www.cointribune.com/en/crypto-could-ethereum-reverse-the-trend-and-overtake-bitcoin/" target="_blank" rel="noreferrer noopener">surpass bitcoin</a>.</p>

The Ethereum Futures Market Is Heating Up, Is The Real Bull Run Underway?

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