Ethereum has marked an $8.5 billion figure, two days back because of traders and retail investors. Reaching an ATH of $2,800, the future open interest of the asset has also marked its peak. The Robust trading activity can be seen behind the speedy price rise of the digital asset.
According to analysts, $3,500 ETH is the next stop for the digital oil of the market.
Ethereum Bullish Behaviour is not Guaranteed
There are a couple of parameters that review the bullish behavior of the digital asset. A major one is the Futures Premeus popularly called as – basis. The parameter bridges the gap between the regular spot market and futures prices of the contract.
The futures having the maturity of 3 months, usually trade with a 10% to 20% annualized premium. Data indicate that professional traders are more bullish on Ether than retail traders, as the 3-month basis currently stands at 25% per year.
However, FOMO has a great role to play in between, as it signals extreme optimism. Professional traders use monthly futures contracts most frequently.
Professional Traders & Retail Investors are Behind ETH ATH
According to the data analysis, the 8-hour funding rate recently pointed at 0.18% in mid-April, equivalent to 3.8% per week. The eight hours of funding surely contributed to the highly optimistic future basis. However, it is to be noted that the impact has completely faded as the annual percentage rate has been forgetful over the past couple of days.
The increased fee is a result of higher buyer’s interest. When a retail buying wave occurs, we can expect the fee to reach 5.5% per week.
A few analysts who consider $355 million in CME’s future will for sure dismiss Ether derivatives. The CME’s future has $355 million in open interest, compared to Bitcoin’s $2.4 billion.
Both FTX and Deribit require 100% full-KYC for their clients. And these markets hold $2 billion in ETH open interest.