The trading volume of Ethereum futures surged to $162.6 billion, surpassing Bitcoin, amidst rising open interest and funding rates, indicating large capital inflows into ETH.
The momentum from both the futures and spot markets is reinforcing Ethereum's dominant short-term position, but the risk of price correction may arise if demand weakens.
MAIN CONTENT
The trading volume of Ethereum futures reached $162.6 billion, accounting for about 50% of the market share, surpassing Bitcoin.
Both open interest and funding rate for ETH have reached multi-month highs, signaling that investment funds are pouring into ETH.
Strong demand for ETH in the spot market helps support the price, but volatility still depends on the momentum of capital flows and investor sentiment.
What is the historical high trading volume of Ethereum futures?
The trading volume of Ethereum futures reached $162.6 billion, accounting for nearly 50% of the entire market, surpassing Bitcoin in the proportion of futures trading amidst a significant capital shift towards ETH. This data is confirmed by expert Maartunn from CryptoQuant.
This is a rare occasion where Ether Futures dominate over Bitcoin. Typically, Bitcoin still holds a superior market share in derivatives. However, this move indicates that investors are more interested in ETH and expect significant price fluctuations in the near future. Data from CryptoQuant also clearly shows the moment capital withdrew from Bitcoin to move to Ethereum.
“Ethereum Futures trading volume first peaked at $162.6 billion, accounting for 50% of the total market – a historic milestone that shifts the capital balance between major assets.”
– Maartunn, CryptoQuant analyst, August 24, 2024, CryptoQuant
What indicates Bitcoin is gradually losing its position compared to Ethereum in the futures market?
The large capital withdrawal from Bitcoin and the transfer to Ethereum is evidenced by the data of Bitcoin 'OG' wallets transferring 135,265 ETH worth $581 million into long positions, according to sources from Lookonchain. This is an important proof of significant capital moving towards ETH.
Additionally, the ETH futures trading market share surged dramatically, while BTC saw a slight decrease, confirming the trend of capital migration. This is not only a temporary technical fluctuation but also reflects a change in the sentiment of large investors.
What do the open interest and funding rate of Ethereum mean for investment strategies?
Open interest in Ethereum surged from $59 billion to $70 billion, indicating that the number of outstanding contracts is rapidly increasing. Additionally, the ETH funding rate reached its highest level in 7 months at 0.026. This means that the Long (buy) side is overwhelmingly dominant.
High open interest is often a signal indicating that capital is being poured in or betting on significant upcoming volatility. A high positive funding rate indicates that the majority of investors expect ETH prices to continue rising, reinforcing a strong upward trend in the short term.
“The Ethereum futures market records the highest open interest and funding rate in many months, reflecting market confidence in ETH's upward price trend.”
– Coinalyze market report, August 2024
Does the demand for Ethereum in the spot market maintain its strength?
Alongside the vibrant trading of futures contracts, the spot market for Ethereum still shows positive signs with buying volume reaching 90,800 ETH compared to 85,000 ETH sold, resulting in a Buy Sell Delta of 5,600 ETH, according to data from Coinalyze.
This not only reflects accumulation but also serves as a driving force maintaining actual upward pressure in the spot market. Netflow data on exchanges also recorded on August 24, the amount of ETH leaving exchanges exceeded the amount deposited by 26,600 ETH, indicating a reduced supply on exchanges.
How does negative netflow of Ethereum affect the price?
Negative netflow means that the amount of ETH withdrawn from the exchange is greater than the amount deposited. This indicates buying pressure exceeds or holding sentiment prevails, usually pushing ETH prices up due to a noticeable drop in supply on exchanges.
This model has been confirmed in previous strong rallies, especially when both derivative and spot capital flows are aligned, supporting the scenario of a price increase based on actual cash flow and the sentiment of major investors.
What price level could Ethereum reach next?
Comprehensive analysis shows that if demand from both the futures and spot markets continues, ETH price could fully recover after a correction and move towards the $5,000 target. However, if capital flows diminish, ETH could be pulled back to the support level of $4,205.
The conquest of these price levels primarily depends on the consensus of large capital flows, derivative volatility, and investor sentiment after a series of strong gains. The risk of reversal always exists, especially when the market shows signs of being overbought or capital flows suddenly change direction.
Market index comparison table between Ethereum and Bitcoin (August 24, 2024)
Ethereum (ETH) Bitcoin (BTC) Futures trading volume $162.6 billion Below $162.6 billion Open interest $70 billion Not disclosed Funding rate (highest in 7 months) 0.026 Not disclosed Spot netflow -26,600 ETH Not disclosed
Frequently asked questions
What is the trading volume of Ethereum futures contracts?
Ethereum recorded a trading volume of futures contracts reaching $162.6 billion on August 24, 2024, accounting for nearly 50% of the market share.
What does the current open interest and funding rate of ETH mean?
High open interest and positive funding rate indicate a strong inflow of investment into ETH, with expectations of continued price increases. Reference: CryptoQuant, Coinalyze.
How does negative netflow on exchanges affect ETH price?
Negative netflow means that ETH is being withdrawn from exchanges more than deposited, reflecting prevailing buying pressure or holding sentiment, usually a bullish signal.
What price level could ETH reach in the near future?
If spot and derivative demand remains strong, ETH could target the $5,000 mark; conversely, the price could retreat to $4,205 if capital flows diminish.
Is the capital reversal between Bitcoin and Ethereum sustainable?
Capital flow momentum may sustain if cash continues to support ETH, however, the market always carries strong volatility according to investor sentiment and actual capital flows.
Source: https://tintucbitcoin.com/ethereum-futures-tang-bitcoin-hut-hoi/
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