{"id":288151,"date":"2021-05-01T11:10:53","date_gmt":"2021-05-01T15:10:53","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=288151"},"modified":"2021-05-01T11:10:53","modified_gmt":"2021-05-01T15:10:53","slug":"2-critical-eth-price-metrics-show-pro-traders-are-boosting-value","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/2-critical-eth-price-metrics-show-pro-traders-are-boosting-value","title":{"rendered":"2 Critical ETH Price Metrics Show Pro Traders are Boosting Value"},"content":{"rendered":"<p>Futures open interest for Ethereum hit a record of $8.5 billion. Pro traders believe that ETH will reach a new high of $3500 soon.<\/p>\n<p>On April 29, <a href=\"https:\/\/ethereum.org\/en\/\">Ether (ETH)<\/a> reached an all-time high of $2800. This growth also pushed the interest of the open future for the crypto, with the new figure standing at $8.5 billion. This is a 52% growth, which depicts an increase in trading activity contributing to the price hike.<\/p>\n<p>Ether derivatives are not very popular with analysts and traders. <a href=\"https:\/\/insidebitcoins.com\/news\/dogecoin-futures-will-not-be-launched-by-cme-group\">CME Group<\/a>, a futures and trading option, only has $355 million in open interest, although it was launched a few months back. This is a small figure compared to Bitcoin\u2019s open interest, which stands at $2.4 billion.<\/p>\n<h2>Not yet a Bullish trend<\/h2>\n<p>Analysts believe that Ethereum is not yet in a bullish state. There are factors used to evaluate whether a market is shifting to a bullish state. The main factor used is a futures premium, which measures a price gap between future contracts and current market prices.<\/p>\n<p>If an asset is in a bullish state, the futures premium should be 10% to 20%. This is known as a lending rate. ETHs futures premium for April stood at 45%. This is too high, which could be a sign of too much optimism.<\/p>\n<p><a href=\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/01\/Wall-Street-bull.jpg\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-246923\" src=\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/01\/Wall-Street-bull.jpg\" alt=\"As Wall Street Teethers in Uncertainty, Bitcoin Remains a Stable Alternative\" width=\"673\" height=\"401\" srcset=\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/01\/Wall-Street-bull.jpg 673w, https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/01\/Wall-Street-bull-300x179.jpg 300w\" sizes=\"(max-width: 673px) 100vw, 673px\" \/><\/a><\/p>\n<h2>Professional Traders are more bullish than Retail Investors<\/h2>\n<p>Professional traders usually go for monthly futures contracts, while on the other hand, retail investors go for perpetual contracts or inverse swaps. With perpetual contracts, <a href=\"https:\/\/insidebitcoins.com\/news\/anthony-pompliano-wall-street-saga-shows-strength-of-retail-investors\">retail investors<\/a> are charged a funding rate after every 8 hours. The funding rate increases every time buyers on long speculation leverage for higher and their accounts are charged regularly.<\/p>\n<p>When retail-trading activities are incredibly high, the funding rate can increase to a maximum of 5.5% every week. In mid-April, the 8-hour funding rate for perpetual contracts reached around 3.8% per week. This high fee caused higher optimism for monthly futures. However, the funding rate has been corrected, and it has now gone back to the standard rate.<\/p>\n<p>The increase in the funding rate in mid-April shows that retail investors are less bullish on Ether than <a href=\"https:\/\/insidebitcoins.com\/how-bitcoin-traders-at-nordikcoin-are-benefiting-from-the-bitcoin-surge\">professional traders<\/a>. The 3-month futures basis currently stands at 25% annualized. This is relatively higher compared to other similar platforms. This means that buyers who want to speculate for the long term are now more willing to make a premium payment to maintain their open positions.<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"fin-excerpt\">Futures open interest for Ethereum hit a record of $8.5 billion. Pro traders believe that ETH will reach a new high of $3500 soon. On <a class=\"read-more-link\" href=\"https:\/\/insidebitcoins.com\/news\/2-critical-eth-price-metrics-show-pro-traders-are-boosting-value\" title=\"2 Critical ETH Price Metrics Show Pro Traders are Boosting Value\">[&#8230;]<\/a><\/div>","protected":false},"author":1717,"featured_media":270931,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[7596],"tags":[9330,7598,7600,5982,7599,7893],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.0 (Yoast SEO v22.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>2 Critical ETH Price Metrics Show Pro Traders are Boosting Value<\/title>\n<meta name=\"description\" content=\"Futures open interest for Ethereum hit a record of $8.5 billion. Pro traders believe that ETH will reach a new high of $3500 soon.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/288151\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"2 Critical ETH Price Metrics Show Pro Traders are Boosting Value\" \/>\n<meta property=\"og:description\" content=\"Futures open interest for Ethereum hit a record of $8.5 billion. Pro traders believe that ETH will reach a new high of $3500 soon.\u00a0\" \/>\n<meta property=\"og:site_name\" content=\"InsideBitcoins.com\" \/>\n<meta property=\"article:published_time\" content=\"2021-05-01T15:10:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2020\/08\/Ethereum3-1.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ali Raza\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ali_r1272\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ali Raza\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/288151#article\",\"isPartOf\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/288151\"},\"author\":{\"name\":\"Ali Raza\",\"@id\":\"https:\/\/insidebitcoins.com\/#\/schema\/person\/542f9bb7fcd1a45cdfd54e377a73fb2d\"},\"headline\":\"2 Critical ETH Price Metrics Show Pro Traders are Boosting Value\",\"datePublished\":\"2021-05-01T15:10:53+00:00\",\"dateModified\":\"2021-05-01T15:10:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/288151\"},\"wordCount\":396,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"},\"keywords\":[\"CME Group\",\"Crypto\",\"ETH\",\"Ethereum\",\"Market\",\"Trading\"],\"articleSection\":[\"Breaking Crypto News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/288151#respond\"]}],\"copyrightYear\":\"2021\",\"copyrightHolder\":{\"@id\":\"https:\/\/insidebitcoins.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/288151#primaryimage\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/288151\",\"url\":\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/288151\",\"name\":\"2 Critical ETH Price Metrics Show Pro Traders are Boosting Value\",\"isPartOf\":{\"@id\":\"https:\/\/insidebitcoins.com\/#website\"},\"datePublished\":\"2021-05-01T15:10:53+00:00\",\"dateModified\":\"2021-05-01T15:10:53+00:00\",\"description\":\"Futures open interest for Ethereum hit a record of $8.5 billion. 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