Ethereum’s bullish momentum has slowed. The second-largest cryptocurrency in terms of market cap is Ethereum, trading at $ 3,066. This represents a loss 4.2% on the daily charts.
Ethereum could be in decline soon after two weeks of profit, largely due to EIP-1559’s incredible rally from $ 2,000 low.
IntoTheBlock’s Out of the Money Around Price (IOMAP), a metric that measures the average price of a crypto asset, and compares it to its current price, suggests Ethereum is at “stable” support.
Analyst Ali Martinez shared the following chart and reported that more than 230,000 addresses have bought 7.33 million ETH between $ 2,970 to $ 3,080. In order to avoid a short-term downtrend, the price of ETH should remain above these levels. Martinez Additional:
Any drop below this price range could prompt investors to turn a profit quickly before their investments go “out of the money”.
Institutional adoption is one of Ethereum’s main drivers. It sees great potential within its ecosystem. Arcane Research has provided additional data that suggests adoption is on the rise, with ETH-based derivatives also on the rise.
Research firm has noticed an increase in open interest (OI), for Ethereum futures on Chicago Mercantile Exchange. ETH trading volumes have risen to prominence, with 30% Bitcoin (BTC), and 27% open interest.
CME’s EH futures OI is currently at an all time high of $650 million. Bitcoin Futures OI At $ 1.8 billion, But Is Substantially Down From Its Feb 18ePeak of $ 3.3 billion. CME crypto futures currently account for 26.5% OI.
Ethereum gains market share from Bitcoin
Arcane Research also stated that the OI suggests that institutions are “eagerly” building Ethereum (ETH) positions. EIP-1559 and the expectation of future appreciation dues to the new network pricing system are most likely to be the cause.
The chart shows that ETH futures trading volume has been increasing since mid-April, with a slight slowdown during the crypto market crash in May and July. Ethereum dropped to $ 1,650 while it was able to quickly recover in both its price and the above metric.
Market share has seen a significant increase in daily trading volume on CME ETH Futures. Friday, August 13eCME’s total volume of crypto futures trading volume was 33% ETH futures. Bullish sentiment among institutional investors about ETH seems to be growing due to the growing dominance of ETH and the growing contango.