- According to on-chain analytics firm, the average daily trading volume in Ethereum’s futures and options markets has dropped to only $14.3 billion.
- According to Glassnode data, Ethereum futures open positions increased by 10% according to a 30-day simple moving average tracked between January 1st and April 12th.
- ETH is trading at $1,632 according to the data. As accumulation slows among daily traders, significant momentum indicators for ETH show an increase in sales.
Interest in Ethereum on derivative markets is declining; it faced decreasing open positions along with selling pressure on the spot market.
Interest in Ethereum Continues to Decline
In the current cycle, activity in Ethereum’s derivative markets has fallen below the levels observed in 2021 and 2022, as found in a new report by Glassnode.
According to the on-chain analytics firm, the average daily trading volume in Ethereum’s futures and options markets has dropped to only $14.3 billion, “roughly half the average volume of the past two years.”
Between 2021 and 2022, the average daily trading volume for these markets was $26.08 billion. With increased liquidity drainage, the average daily trading volume for the past week has been below $10 billion.
Increased activity in Ethereum’s futures markets was observed with the anticipation of the Shanghai upgrade on April 12th. According to Glassnode data, Ethereum futures open positions increased by 10% according to a 30-day simple moving average tracked between January 1st and April 12th.
When the Shanghai upgrade went live, the total open position in futures was $5.18 billion. However, many participants in the futures market began closing their positions as they saw the upgrade as the asset’s last major speculative event.
This led to a steady decrease in open positions. As of September 4th, this value was recorded at $4.32 billion, falling below the January 1st level.
On the other hand, as found by Glassnode, Ethereum’s options market has performed well. According to the report, the daily trading volume for this market has increased by 256% since the beginning of the year. As of September 4th, this value stood at $5.48 billion.
Ethereum in the Spot Market
At the time of writing, ETH is trading at $1,632 according to data. As accumulation slows among daily traders, significant momentum indicators for ETH show an increase in sales.
In the daily chart, the Stochastic RSI (StochRSI) indicator for the cryptocurrency has been trending downward since August 31st. At the time of writing, the indicator’s %K line was at 46.08. In a downward position, ETH distribution continues to outpace accumulation.
Similarly, the On-Balance-Volume (OBV) indicator for the cryptocurrency has been decreasing since mid-August. At the time of writing, it was at 23.971 million and had decreased by 1% in the past three weeks. When an asset’s OBV decreases in this way, it indicates that the selling volume is greater than the buying volume.
