3 criteria to get the price of Ethereum to $ 2000admin
price of Ethereum to $ 2000 : Various data show that investors are optimistic about the Ethereum price uptrend after a 36% correction to $ 1,300, and predict that the cryptocurrency will rise to 2,000.
According to Kevin Telegraph, the price of Ethereum on February 20 (March 2) went up to the peak of 2015 dollars. This has led to a sharp rise in optimism about the cryptocurrency in several indicators. While this increase in optimism can be attributed to Ethereum’s 176% growth since the beginning of 2021, its importance among investors should not be overlooked.
One of the main reasons for the positive sentiment in the Ethereum market is the release of CME futures contracts for Ethereum. Grayscale Ethereum’s fund assets, on the other hand, reached $ 6.3 billion. In addition, decentralized financial market (DeFi) market turmoil continues to rise, with more than $ 21 billion in ether currently being invested in these platforms.
Index fear and greed
Currently, the index of fear and taste is in the range of 93, which indicates the “extreme greed” of traders. Many traders use this index as a signal for trend reversals; That is, investors consider this criterion as a buying opportunity, assuming that investors’ taste is an upward factor; But it should not be forgotten that in most cases, the strong taste of investors indicates an imminent correction.
Unlike small traders, whose numbers are growing by the day, experienced market makers and whales are skeptical that Ethereum will reach 2,000 prices. Aside from the fact that the 36% price correction seems reasonable after the price peak was recorded, this correction was intensified by the liquidations of investors.
Between February 19 and 23, $ 2 billion in liquid futures contracts accounted for 28% of open contracts; For this reason, it can be said that this issue may act as a factor in weakening the bullish sentiment in the market. On the other hand, the index of fear and greed has shown the same issue.
Surprisingly, none of this happened in the Ethereum derivatives markets, and both futures premiums and skewness (deviation from normal distribution) remained bullish.
Premium is in the healthy range
By calculating the difference between current and future markets, the trader can measure the up or down of the market.
On a quarterly basis, the premium for smart contracts is usually 10% or more compared to regular instant markets. Whenever this percentage decreases or reaches a negative range, it will indicate negative feelings in the market. This is called a “reversal” and indicates that the market is moving in a downward direction.
The chart above shows that the peak of this index was February 20 and was in the range of 30%. At that time, the price of Ethereum reached a new high. It is worth noting that during the Ethereum price correction and falling to $ 1,300, this index remained above the 16% range. These data show that professional investors have a positive attitude towards the potential increase in Ethereum prices.
Option contracts are bullish
In the discussion of options contracts, the 25% delta is the determining factor. This index examines buying options (call) and selling options (put) together.
This criterion will be negative when the premium of sales options is higher than the options with similar risk. Negative skewness is an upward sign. On the other hand, if the market is declining, this criterion will enter the positive range.
The skunk delta has not entered the positive range in the past month; Therefore, there is no evidence that market traders have a downside view.
This data is promising; Given that ETHEREUM has been accompanied by a sharp increase in sales pressure, but futures and options trades were still in the uptrend, it can be concluded that this data is promising.
Gradually, the further Ether moves away from its $ 1,300 floor, the greater the confidence of investors that the uptrend will not break.