Ethereum in a delicate position? THE cryptocurrency market remains fragilein particular with regard to the main capitalizations of the sector. Indeed, while Bitcoin tries to maintain itself above $ 90,000, Ethereum displays a course close to $ 2,400. A situation that pushes institutional investors to consider a new decrease To come for ETH cryptocurrency. Because the options open to CME's term contracts are exploding.
The key points of this article:Ethereum records an increase in positions open to the CME's term contracts, revealing a disturbing downward trend.
Potential liquidations on the SKY DEFI platform could intensify this situation.
Institutional people are betting on a drop in eth
The recent upward period started on the cryptocurrency market currently seems to be well abused. Indeed, the main cryptocurrencies in the sector do not fail to maintain their heights Recorded just a few weeks ago. A situation that encourages investors to remain cautious. And more particularly institutional structures, whose strategies are often focused on caution and revealing upcoming trends.
Downward trend engaged for Ethereum? This is the reason why the CF Benchmarks, Thomas Erdösi's product manager, has just sounded the alarm about Open positions on Ethereum term contracts of the CME. Because the latter record a high rise in downward coverage interests.
«There is a clear increase in the interest in downward coverage for Ethereum, as can be seen in the weekly change in open interest for CME ETH options from February 18 to 24 for the expiration of March . »»
Thomas Erdösi
According to Thomas Erdösi, market participants seem Increase the lowering positions on Ethereum. And the targeted levels are focused on $ 2,000, i.e. a drop of almost 20 % to be expected on its current course.
Ethereum: liquidations to be expected?
A situation also analyzed by the operating director (COO) of Biget Wallet, Alvin Kan. And according to him, this downward trend could also be motivated by The risk of liquidation of certain positions open on The DEFI Sky platform (formerly Makedao), according to his acolyte. Indeed, he estimates that 3 positions on this platform would represent a significant lower lower basis. With trigger levels respectively set at $ 1926, $ 1842 and $ 1,793.
“With $ 340 million in potential Makerdao liquidations on the horizon, the recent drop in Ethereum has put leverage in a difficult situation. The 296 million dollars already deleted indicate that the forced sale has started, and if liquidations accelerate, the downward pressure could intensify quickly. »»
Alvin kan,
Institutional investors seem to prepare for A new drop in ETH cryptocurrency. And this could quickly cause cascade liquidations on the Sky protocol. A situation to follow near the side of the Ethereum network, increasingly abandoned by its investing.