BTC is trading above $64,000 while ETH prices are in a bearish trend. CD20 remains stable and is traded at 2,174. Ethereum (ETH) was trading just above $3,000 during the Asian trading hour, while the CoinDesk Indices Ethereum Trend Indicator gave a negative signal.
Why is Ethereum price falling?
Bitcoin (BTC) has performed strongly throughout most of Asian trading hours. Bitcoin traded just above $64,000. Jun-young Heo, Derivatives Trader at Presto, did an interview with CoinDesk. Accordingly, he stated that “unexpectedly high US treasury yields, a strengthening dollar and geopolitical risks in the Middle East are affecting crypto markets.”
Heo stated that the increase in risk perception was also reflected in the derivative markets. He stated that funding rates on some stock exchanges have fallen to negative levels. Despite this, he emphasized that three-month base returns dropped to 10 percent. Heo pointed out that short-term put options are priced higher than call options for both BTC and ETH. He stated that liquidations in the last 12 hours affected long and short futures positions almost equally. In this process, the long position of $31.1 million was liquidated while the short position of $36.49 million was disrupted.
The decline that worries Ethereum investors
Justin d’Anethan, business development manager at crypto market maker Keyrock, sent a note to CoinDesk from Hong Kong. In this note, he said, “Investors may not have surpassed historical peaks, but they are reluctant to go completely into decline.” CoinDesk 20 index remains flat at 2,174. d’Anethan stated that a significant directional movement is expected in the markets. However, he stated that the horizontal course of prices could be a precursor to an explosive movement in the future. “Unlike the current situation, some time or another catalyst may be needed for the rise again, rather than known events,” Heo said.
Heo noted that it may take some time or another catalyst, rather than known events, to turn the market sentiment bullish again. On the other hand, factors such as surprisingly high inflation and rising tensions in the Middle East have an impact. He emphasized that the macroeconomic outlook dominates risky assets.
Bitcoin maintained a strong stance despite the falling market
Bitcoin’s strong performance failed to break other all-time highs. However, it attracts the attention of investors who do not want to enter a downward trend. Ethereum’s prices have followed a downward trend and uncertainty prevails throughout the market. The CoinDesk 20 index remains stable, but expectations are growing that future price movements could be explosive.
According to our Kriptokoin.com news, short-term put options are overpriced. The equality in liquidation of positions reflects the uncertainty in the market. Heo encourages investors to be careful. The crypto market continues to fluctuate with the downward trend in Ethereum’s prices and the strong performance of Bitcoin. However, it is thought that there may be significant changes in future price movements due to the effects of potential catalysts as well as market uncertainties.
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