ETH experienced a decline of 14.7% since its peak in April, but bullish sentiment in ETH derivatives markets suggests optimism among investors.
Investors using ETH derivatives may be responding to the potential approval of a spot Bitcoin ETF in the US, which could drive the entire cryptocurrency market to higher price levels.
The upcoming Dencun upgrade for Ethereum, scheduled for the first half of 2024, may also contribute to the optimism among ETH investors. This upgrade aims to enhance data availability and reduce transaction costs.
Ethereum competitors are facing challenges due to high costs and processing capacity bottlenecks. This gives Ethereum an advantage with its eight-year track record of continuous upgrades.
The Ether futures premium has reached its highest level in over a year, indicating growing demand for leveraged ETH long positions.
The Ether options market also shows signs of optimism, with the 25% delta skew reaching its lowest level in over 12 months.
The drivers behind the bullish sentiment in ETH derivatives markets are not entirely clear, but potential approval for Ether spot ETFs and planned upgrades to reduce transaction costs could be contributing factors.
