Investor interest in the ether appears to continue to grow, due to the volume of the spot market and an open interest in institutional grade futures.
- Ether (ETH) trading around $ 2507 at 9:00 p.m. UTC (4:00 p.m. ET). In the red 5% in the previous 24 hours.
- 24 Hour Ether Range: $ 2,397 – $ 2,750 (CoinDesk 20)
- Bitcoin (BTC) is trading around $ 37,310 at 9:00 p.m. UTC (4:00 p.m. ET). 5.6% loss in the last 24 hours.
- 24-hour range of Bitcoin: $ 36,591 – $ 39,824 (CoinDesk 20)
Ether volumes rival bitcoin again
The second largest cryptocurrency by market cap, Ether, was trading at around $ 2,507 at 9:00 p.m. UTC (4:00 p.m. ET), sliding 5% over the previous 24 hours. The asset is near the 10 hour moving average and above 50 days a side signal for market technicians.
Ether went from $ 2,750 at 12:45 a.m. UTC (8:45 p.m. ET Monday) to $ 2397 at 12:00 p.m. UTC (8 a.m. ET), a decrease of 12.8%, based on data from CoinDesk 20. However, Bitcoin has since made gains, standing at $ 2507 at time of publication.
“There’s a lot of room for medium-term oversold territory for the ether,” Katie Stockton, technical analyst for Fairlead Strategies, said in her weekly investor brief. “The correction phase did not damage the long-term uptrend or the positive monthly momentum indicators, so we would ultimately be a weak buy. ”
Despite Stockton’s concerns about oversold territory, ether trading volumes appear robust. Monday’s closing data from CoinDesk Research again underscores that traders will be pooling liquidity in promising long-term digital assets, and not just Bitcoin.
Volumes on the major spot exchanges tracked by CoinDesk Research for Bitcoin on Monday were $ 72,762,652,345, while ether was $ 72,479,251,812, while BTC has generally dominated in the past.
Ether Futures Open Interest Bounces On CME
On February 8, when institutional classroom CME first launched ether futures, open interest was $ 20 million, according to data aggregator Skew.
On May 14, open interest in the ether hit a record high of $ 598.4 million, a 28-fold increase and a sign that professional fund managers were looking for increased exposure to the digital asset. Since that zenith, open interest fell to $ 366.9 million on Sunday, but Monday’s closing data suggests interest is on the rise, hitting nearly 20% to $ 437.2 million.
“The outlook for traders on Ethereum yesterday turned very positive after being negative for weeks,” said Nick Mancini, research analyst for crypto analysis platform Trade the Chain. “Such a jump in sentiment implies a hyperfocus on Ethereum and ERC-20, or Ethereum-based assets.”
Ether is up more than 240% since the start of the year.
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Bitcoin and Ether correlation goes up
Bitcoin, the world’s largest cryptocurrency by market cap, fell 5.6% on Tuesday at the time of publication. BTC was above the 10-hour and 50-day moving average, a bullish signal for market technicians.
“Bitcoin’s momentum in the medium term is on the decline,” Fairlead’s Stockton said. “But it should moderate in the coming weeks, we expect a temporary stabilization near a 50% retracement level of around $ 34,000. “
BTC fell from $ 39,824 at 12:45 a.m. UTC (8:45 p.m. ET Monday) to $ 36,591 at 12:00 p.m. UTC (8:00 a.m. ET), an 8% decrease based on data from CoinDesk 20. However, Bitcoin has since recovered, s’ establishing at $ 37,310 at time of publication. Market behavior is similar to ether, with market ups and downs in tandem over the past 24 hours. Ether turns more in percentages.
Bitcoin against ether
Bitcoin’s 90-day correlation with ETH tends to pick up after falling to a three-month low of 0.69. It is at 0.75 as of Monday’s data close, according to CoinDesk Research.
Ether market action could take the limelight of bitcoin over time due to very different mechanisms between the two assets, according to Steven McClurg, chief investment officer at digital asset manager Valkyrie Investments.
“Due to the law of large numbers, it takes a lot more users today than it did a year ago to increase activity on the Bitcoin network to the point that it raises the price,” said McClurg. “ETH is gaining traction with ETH 2.0 and those who stake their assets on the network in anticipation of proof-of-stake, withdrawing supply as demand comes in.”
Fairlead’s Stockton sees the promise of bitcoin’s relative stability against alternative cryptocurrencies in the coming week, based on its technical trend analysis for its investor update on Monday night.
Cardano, dogecoin, polkadot, XRP and stellar have fallen out of favor with bitcoin, Stockton noted.
Digital assets on CoinDesk 20 are Red Tuesday. Notable losers at 9 p.m. UTC (4 p.m. ET):
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- Oil fell 0.26%. Price per barrel of West Texas Intermediate crude: $ 65.85.
- Gold was in the green 1% and at $ 1,899 at time of publication.
- Silver wins, up 0.78% and changes hands to $ 27.99.
- The yield on 10-year US Treasuries fell to 1.557 and in the red to 2.8% on Tuesday.