Ethereum Derivatives Look Bearish, But Traders Think ETH Bottom Is In
Expectations of tight regulation and further FTX contagion continue to weigh on ETH price, but derivatives are showing a slight improvement in sentiment.
Market analysis
Ether (ETH) rose 5.5% in the early hours of November 29, reclaiming critical support at $1,200. However, when looking at a broader timeframe, the negative performance of 24% over the past 30 days has a significant impact on investor sentiment. Additionally, investor sentiment soured after BlockFi filed for bankruptcy on Nov. 28.
Reports remained negative after the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) announced a settlement with Kraken Exchange for "apparent Iran sanctions violations." In a Nov. 28 announcement, OFAC said Kraken had agreed to pay more than $362,000 as part of a settlement "to settle its potential civil liability."
Additionally, on November 28, institutional crypto financial services provider Silvergate Capital denied rumors of a large exposure to the bankruptcy of BlockFi. Silvergate added that its losses were less than $20 million in digital assets and reiterated that BlockFi was not the custodian of its crypto-collateralized loans.
Traders fear Ether could fall below $800 if the bear market continues, but some also question the risk of invalidation. An example comes from Twitter crypto trader @CryptoCapo_:
I have spent hundreds of hours analyzing the m...
Expectations of tight regulation and further FTX contagion continue to weigh on ETH price, but derivatives are showing a slight improvement in sentiment.
Market analysis
Ether (ETH) rose 5.5% in the early hours of November 29, reclaiming critical support at $1,200. However, when looking at a broader timeframe, the negative performance of 24% over the past 30 days has a significant impact on investor sentiment. Additionally, investor sentiment soured after BlockFi filed for bankruptcy on Nov. 28.
Reports remained negative after the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) announced a settlement with Kraken Exchange for "apparent Iran sanctions violations." In a Nov. 28 announcement, OFAC said Kraken had agreed to pay more than $362,000 as part of a settlement "to settle its potential civil liability."
Additionally, on November 28, institutional crypto financial services provider Silvergate Capital denied rumors of a large exposure to the bankruptcy of BlockFi. Silvergate added that its losses were less than $20 million in digital assets and reiterated that BlockFi was not the custodian of its crypto-collateralized loans.
Traders fear Ether could fall below $800 if the bear market continues, but some also question the risk of invalidation. An example comes from Twitter crypto trader @CryptoCapo_:
I have spent hundreds of hours analyzing the m...
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