- The probability of Ethereum visiting the $1600 support level is very low.
- The $1930 resistance level is of great importance for Ethereum.
Ethereum price rise to $2000 is not far away – Current Ethereum (ETH) derivative data.
Current Status of Ethereum Derivatives!
Three-month Ethereum futures contracts have emerged as a preferred tool among large investors and arbitrage desks. These futures contracts, which allow for a longer agreement period, typically command a modest premium over spot markets, reflecting the increased value assigned by sellers to the deferred agreement.
In a well-functioning market, futures contracts can be expected to trade at a typical premium of 5% to 10% per annum. It is important to note that this phenomenon is not unique to the cryptocurrency space, but is a common feature in various markets.
Since April 19, the Ethereum futures premium has remained at 2%, indicating that professionals are hesitant to change their stance when ETH hits the $1,950 resistance. The lack of long-term leverage demand does not guarantee price declines, so traders should examine Ethereum’s options markets to see how major players are predicting future price changes.
Currently, the skew rate of 25% is at 1, which means equal valuation between protective put options and calls above neutral. This development serves as a bullish signal, especially considering the recent 8% correction in price within six days after ETH failed to break the $1,950 resistance.
Most importantly, current derivative measurements do not indicate overwhelming fear or the presence of overly leveraged bearish bets, which means that the likelihood of Ethereum revisiting the $1,600 support level in the near future is low.
What’s Next for Ethereum Price?
Ethereum’s price has remained between the 20 and 50-day EMAs, indicating intense battle between bulls and bears. ETH price is trading at $1,861 with over 1% increase in the last 24 hours. Currently, ETH price is hovering within the bearish range with support at $1,780.
ETH/USDT Daily Price Chart
However, bulls quickly took control near $1,800, pushing the price above the 23.6% Fib level. A break above the $1,930 resistance level will increase upward momentum and bring Ethereum closer to $2,000. The rising trend line of the RSI and its current trading at 46 indicate that buyers are trying to increase trading volume and network activity.
If Ethereum cannot hold its current range, it could trade at $1,740 near the EMA-100 on the downside.
