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Ethereum futures premium hits 1-year high — Will ETH price follow?

Published 11/01/2023, 04:30 PM
Updated 11/01/2023, 06:00 PM
ETH/USD
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Ether (ETH) price has declined by 14.7% since its peak at $2,120 on April 16, 2023. However, two derivatives metrics indicate that investors have not felt this bullish in over a year. This discrepancy warrants an investigation into whether the recent optimism is a broader response to Bitcoin (BTC) breaking above $34,000 on Oct. 24.

One possible reason for the surge in enthusiasm among investors using ETH derivatives is the overall market's excitement regarding the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. According to analysts from Bloomberg, the ongoing amendments to the spot Bitcoin ETF proposals can be seen as a “good sign” of progress and impending approvals. This development is expected to drive the entire cryptocurrency market to higher price levels.

Assessing bullish sentiment in ETH derivatives markets

Ether 1-month futures basis rate. Source: Laevitas.ch
Ether 30-day options 25% delta skew. Source: Laevitas.ch

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