On the Ethereum network, it has recently been discovered that new addresses have been added, and derivative data shows that people have once again become optimistic about the prospects of Ethereum (ETH).However, while Solana, XRP, and Cardano are gaining momentum in the counterfeit currency market, Ethereum (ETH) seems to have been operating in a low-key manner
On the Ethereum network, it has recently been discovered that new addresses have been added, and derivative data shows that people have once again become optimistic about the prospects of Ethereum (ETH).
However, while Solana, XRP, and Cardano are gaining momentum in the counterfeit currency market, Ethereum (ETH) seems to have been operating in a low-key manner. In the past 24 hours, ETH prices have risen by 2% again, reaching $1839 and a market value of $221 billion.
The Ethereum network has experienced a leap forward
According to Santiment's on chain data, Ethereum has recently jumped to the $1800 level, thanks to a significant increase in new address creation, reaching its highest daily average since October 7th.
If the long-term trend of network expansion continues and the available supply of exchanges continues to decrease, Ethereum ($ETH) may have ample reason to break through the $2000 threshold again.
Overview of ETH Derivatives Market
Recently, VitalikButerin's transfer of ETH to Coinbase has sparked heated discussions about the rise in ETH prices. In addition, despite recent selling pressure, Ethereum derivative data shows a rising bullish sentiment.
Since peaking at $2120 on April 16, 2023, Ethereum (ETH) prices have fallen by 14.7%. However, two key derivative indicators indicate a significant increase in investors' bullish sentiment, reaching a high in over a year.
Firstly, the Ethereum futures premium, which measures the difference between two month futures contracts and spot prices, has surged to its highest point in over a year. In a strong market, annualized premiums (also known as basis rates) typically range from 5% to 10%.
These data indicate that the demand for leveraged long positions in ETH futures continues to grow, with futures contract premiums rising from 1% on October 23 to 7.4% on October 30, exceeding the neutral to bullish threshold of 5%. After the ETH price rose by 15.7% within two weeks, the indicator showed a significant increase.
In addition, the analysis of the options market provides additional insights. The 25% Delta deviation of Ethereum options can serve as an indicator of when arbitrageurs and market makers may charge excessive fees for upstream or downstream protection. A decrease in Ethereum prices usually leads to a deviation indicator rising above 7%, while a negative deviation of 7% often occurs during optimistic periods.
It is worth noting that on October 27th, the 25% Delta deviation of Ethereum options reached a negative 16% level, reaching its lowest point in the past 12 months. During this period, protective put (put) options were traded at a discount, reflecting excessive optimism among traders. In addition, the current 8% discount on put options has undergone a significant change compared to the previous positive deviation of 7% or higher that persisted until October 18th.
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