The latest news reports that Ether (ETH) prices have dropped 37.5% in the last seven days, and developers have decided to postpone the network’s migration to a proof-of-stock (PoS) consensus. This update will end the reliance on proof-of-work (PoW) mining and the merger scalability solution that has been pursued for the past six years.
Competitive smart contracts such as BNB, Cardano (ADA) and Solana (SOL) have outperformed Ether by 13% to 17% since June 8, although there has been a correction across the market in the cryptocurrency sector. This suggests that issues with the Ethereum network weigh on ETH.
The “hard bomb” feature was added to the code in 2016 as new consensus mechanism plans (formerly Eth2) were developed. At the peak of the so-called “DeFi Summer”, Ethereum’s average transaction costs exceeded $ 65, which was disappointing even for the most enthusiastic users. This is why the merger plays such an important role in the eyes of investors and, consequently, the ether price.
Option traders remain extremely risk-averse
To understand how the whales and market makers are positioned, traders should look at the market data for ether products. The 25% delta tilt is a sign that professional traders charge high upside or downward protection.
If traders expect a decline in ether prices, the tilt indicator moves more than 10%. On the other hand, general excitement reflects a negative 10% skew. This is why the metric is called the fear and greed metric of pro shoppers.
The tilt indicator improved on June 16, at least for a while, touching 19%. However, as soon as it became clear that rising above the $ 1,200 resistance would take longer than expected, the oblique metric rose to 24%. High index, low favored traders are at risk of price decline.
Long-short data shows that traders are not interested in shorts
The long-short net ratio of top traders excludes only external factors that may affect the options markets. By analyzing these positions on the spot, one can better understand whether permanent and quarterly futures contracts, whether professional traders favor bullish or bear.
There are occasional methodological differences between the different exchanges, so observers must monitor the changes rather than absolute figures.
Even though Ether failed to retain $ 1,200 support, professional traders did not change their positions between June 14 and 16, according to a long-short index.
Binance exhibited a modest increase in its long-short ratio as the indicator moved from 1.11 to 1.22 in two days. Thus, those traders slightly increased their bullish bets.
The Huobi data shows a consistent pattern as the long-shortened indicator stays near the full time 1.00. Lastly, on the OKX exchange, the metric swelled sharply during the period but ended unchanged at 1.04.
Hope for the best, but be prepared for the worst
Overall, there was no significant change in the future positions of whales and market makers, though ether fell to $ 1,012 on June 15. However, option traders fear that a decline of less than $ 1,000 is feasible, while negative news flow will have a greater impact on prices.
If those whales and market makers have proof that there could be a deep price correction, this is reflected in the long-short ratio of the top traders to the exchanges.
Merchants must be prepared for a sub-$ 1,000 ether, not “in the original scenario,” as they say, “follow their deeds, follow their words.”
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