Ether futures and options reflect pro traders' confidence in the bull run.
Ether (ETH) plunged 10% to $3,567 on March 15, marking its lowest point in over a week. This downturn triggered $126 million in forced liquidations within ETH futures. Investors are now questioning whether this signals a shift away from the recent bullish trend and pondering the likelihood of revisiting the $4,090 level observed on March 12. The key to this question may lie in the demand for Ether derivatives.
Ether's decline on March 15 mirrored the drops seen in Bitcoin (BTC) and the wider cryptocurrency market, showing no particular underperformance compared to the overall sector. In a similar vein, the S&P 500 index dropped by 1.1% after almost hitting a new all-time high of 5,257 on March 14. Nonetheless, this doesn't necessarily indicate a corresponding sentiment among ETH investors.
Some experts believe that the movement to take profits is not unique to the crypto markets, highlighted by the U.S. 2-year Treasury yield hitting 4.73% on March 15, its peak in over three months. A rise in yield on fixed incomes suggests selling pressure, as investors seek higher returns on these assets. Therefore, whether cryptocurrencies are viewed as risky investments or scarce alternatives, traders are moving towards cash for security.
