The post Ethereum Metrics Show Bullish Signs for ETH Ahead appeared on BitcoinEthereumNews.com.

The overwhelming chatter on social media, especially Crypto Twitter is that Ethereum’s ether (ETH) is dead, a narrowly moving token. Still, the market is betting on higher ETH prices as traders pile into derivatives tied to the cryptocurrency alongside a boom in Ethereum’s blob usage. Cumulative open interest in perpetual and standard futures contracts has surged to a record 6.32 million ETH, worth over $27 billion, registering a 17% month-to-date gain, according to data source CoinGlass. An uptick in open interest alongside a price is said to validate an uptrend, and ether’s price has surged 35% to $3,400 this month, matching the industry leader’s bitcoin’s price gain. According to data source Velo, the gap between three-month ETH futures and spot prices, the so-called premium, has expanded to an annualized 16% on offshore exchanges Binance, OKX and Deribit. Meanwhile, the front-month premium on the Chicago Mercantile Exchange has risen to 14%. (CoinGlass) That’s noteworthy because an elevated premium could generate greater interest in cash and carry trades used to capture the price differential between the two markets, leading to increased inflows into the U.S.-listed spot ETH ETFs. The strategy comprises a long position in the spot ETF with a simultaneous short in the CME futures. Activity in the ether options market listed on Deribit is also picking up, with over 2 million contracts active or open at press time, the highest since late June. In notional terms, the open interest stands at $7.33 billion, according to Deribit Metrics. The price uptick has further driven up the value of assets locked on Ethereum-based applications to $65 billion as of Wednesday, a figure last seen in May 2022. A major chunk of those, however, are held on three applications. Liquid staking protocol Lido holds over $32 billion in locked ether, Aave, a lending…

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Filed under: News - @ November 27, 2024 8:19 am