Ether derivatives were unable to maintain elevated optimism levels, despite the potential spot ETF and recent macroeconomic data.
Ether (ETH) traders experienced a shock when its price approached the $3,500 mark on June 11, leading to $90 million in ETH leveraged longs being liquidated within 48 hours. Although the decline was largely influenced by macroeconomic developments, including a revised outlook by the U.S. central bank and data on U.S. jobless claims, Ether investors have now turned bearish, as indicated by two specific metrics.
On June 12, the U.S. Federal Reserve (Fed) disclosed its interest rate projections, revealing that four officials foresee no changes until the end of 2024. The remaining 15 officials were divided, expecting either one or two cuts by the year’s end. This proved somewhat disappointing for risk-on investors, as it reduced the incentives to move away from fixed-income assets. Nevertheless, Fed Chair Jerome Powell emphasized that the labor market and price stability would remain key drivers of monetary policy decisions.
The U.S. Labor Department reported on June 13 that the number of Americans filing for new unemployment benefits had surged to a 10-month high of 242,000 the previous week. Oliver Allen, senior U.S. economist at Pantheon Macroeconomics, commented to Yahoo Finance, "High long-term rates, tight credit conditions and a gradual softening in demand are starting to weigh more heavily on businesses, and on small companies in particular."
