Data shows Ethereum price could flip $1,300 to support and then rally higher now that ETH options traders are no longer paying high premiums for protective put options. noshitcoins explains.
Retail traders usually avoid quarterly futures due to their price difference from spot markets. Meanwhile, professional traders prefer these instruments because they prevent the fluctuation of funding rates in aThe two-month futures annualized premium should trade between +4% to +8% in healthy markets to cover costs and associated risks. When the futures trade at a discount versus regular spot markets, it shows a lack of confidence from leverage buyers, which is a bearish indicator.
In bear markets, options investors give higher odds for a price dump, causing the skew indicator to rise above 10%. On the other hand, bullish markets tend to drive the skew indicator below -10%, meaning the bearish put options are discounted.The delta skew currently sits at 11% after flirting with the neutral range on Jan. 9, meaning that whales and market makers no longer charge excessive premiums for protective put options.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Bitcoin, Ethereum Technical Analysis: ETH Above $1,330, Consolidating Recent Gains – Market Updates Bitcoin NewsEthereum mostly consolidated during Tuesday’s session, as prices continued to trade close to recent highs.
Leer más »
Aussie data dump (Nov): Data comes in hot and sends AUD higherAustralia's Retail Sales and the monthly Consumer Price Index indicator are falling in at the same time as follows: Australia Retail Sales MoM Nov: 1.
Leer más »
Price analysis 1/9: SPX, DXY, BTC, ETH, BNB, XRP, DOGE, ADA, MATIC, LTCBitcoin and altcoins have started to rally now that DXY is falling and stocks are rising, but what will it take to give the breakout sustainable momentum?
Leer más »
Bitcoin price taps $17.5K as traders in ‘disbelief’ doubt crypto rallyIt's not looking good for BTC or ETH this week despite price strength, traders argue ahead of CPI.
Leer más »
Ethereum Price Can Rebound to ATH, Here's What's Needed Here: ReportRecent analytics report shows that there is major factor that can drive Ethereum back to $4,858 peak
Leer más »
BNB Chain vs. Ethereum: Differences explainedRead the BNB Smart Chain (BSC) vs. the Ethereum (ETH) blockchain breakdown to understand the differences between these two blockchains.
Leer más »