Ethereum gains 90% in Q3 – Can ETH breach its 2021 highs?
Key Takeaways
Ethereum is on the fringe of worth discovery with file Open Curiosity. Sturdy FOMO might flip the script right into a squeeze as an alternative of a sell-off.
We’re solely midway by way of Q3, and Ethereum [ETH] has already logged its strongest quarterly efficiency on file, delivering positive factors north of 90%. That’s a decisive win for short-term holders (STHs).
In the meantime, with worth sitting simply 3% beneath worth discovery, long-term holders (LTHs) are additionally seeing their price foundation reclaimed as Ethereum revisits its 2021 highs.
All in all, market sentiment is firmly in FOMO territory. And in line with AMBCrypto, this type of risk-on setup might be precisely what ETH must kick off its subsequent leg increased.
Leveraged bets heating up as Ethereum eyes breakout
Over $3 billion has flowed into Ethereum through spot ETFs this week alone. This indicators sturdy accumulation across the $4,200 zone, pushing costs up 12% over the identical interval.
And but, ETH’s Futures quantity bubble was at 0.32%, at press time, signaling above-average leveraged exercise. Spot quantity, in the meantime, sat at 0.21%, reflecting stable however comparatively subdued spot market participation.
Supporting this, Glassnode information confirmed that ETH Futures Open Curiosity (OI) reached a brand new all-time excessive of $35.5 billion as spot costs approached $4,590.
This displays heavy spinoff positioning alongside ongoing spot demand.
Supply: Glassnode
Put merely, regardless that spot demand is heating up with bids stacked on the orderbook, derivatives exercise is operating even hotter. This type of risk-on setup usually units the stage for volatility if spot demand eases.
In June’s retracement, ETH Futures OI peaked above $20 billion, however spot demand fell, with the spot bubble dropping to 0.03% whereas futures stayed scorching at 0.23%.
That’s the place FOMO comes into play. If Ethereum can’t maintain key resistance ranges, an identical deleveraging section might observe, making the spot volume bubble a key metric to look at.
