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  • Ethereum price prediction: ETH derivatives data shows weak momentum

    Ethereum price prediction: ETH derivatives data shows weak momentum

    Ethereum price prediction

    • ETH derivatives show weak momentum despite strong ETF inflows.
    • Ethereum’s network activity and TVL continue to decline.
    • Technical analysis hints at long-term upside, but traders stay cautious.

    Ethereum (ETH) has seen a strong price surge in recent weeks, gaining more than 54% over the past month and trading at around $3,755 at press time.

    However, despite this rally and strong spot ETF inflows, derivatives market data paints a very different picture, casting doubt on whether Ethereum can break through the psychologically significant $4,000 level any time soon.

    In essence, the disconnect between bullish institutional inflows and weak derivatives metrics raises several questions for market participants.

    Is Ethereum’s recent rally sustainable, or is it merely a reflection of speculative optimism driven by ETF hype?

    Furthermore, are investors losing confidence in Ethereum’s network fundamentals amid rising competition from rival blockchains?

    Derivatives market tells a cautious tale

    While Ethereum’s spot market has been energised by inflows into exchange-traded funds, futures data shows traders are hesitant to commit to leveraged bullish positions.

    As of Thursday, the annualised funding rate for ETH perpetual futures had fallen back to 9%, down from 19% earlier in the week, with the ETH OI-weighted funding rate dropping to 0.0043% from 0.0163% on July 21.

    ETH OI-weighted funding rate

    This suggests waning demand for long positions, even after a near 46% gain in ETH price since early July.

    This behaviour is unusual. Historically, rising prices coincide with stronger futures premiums, yet the current trend indicates hesitation.

    The 3-month ETH futures premium has also softened slightly to 6%, down from 8% just days ago.

    While this still sits within a neutral range, it reveals a reluctance among whales and market makers to bet aggressively on further price appreciation in the near term.

    Ethereum network weakness frustrates investors

    The cautious tone in derivatives is likely being fueled by stagnant on-chain activity.

    Ethereum’s total value locked (TVL) dropped to a five-month low of 23.4 million ETH, falling 11% in just 30 days.

    That sharp decline comes despite ETH’s rising dollar value and highlights a significant reduction in the volume of assets being deployed within the ecosystem.

    In contrast, Solana’s TVL only fell 4% during the same period, while BNB Chain’s TVL rose 15% in native token terms.

    These shifts show that competing platforms are either maintaining or growing their utility at a time when Ethereum’s activity appears to be plateauing.

    Even more concerning is Ethereum’s decline in dominance among decentralised exchange (DEX) volumes.

    According to DefiLlama, Ethereum recorded $81.32 billion in DEX activity over the past month.

    Solana surpassed that with $82.9 billion, while BNB Chain led with a staggering $189.2 billion.

    These figures highlight that Ethereum is no longer the go-to platform for certain core DeFi activities.

    Technical analysis signals a mixed ETH price outlook

    Despite lukewarm derivative activity, technical analysts remain divided on Ethereum’s future trajectory.

    Popular investor Ivan On Tech has pointed to a symmetrical triangle pattern that could lead to a breakout toward $7,709, more than double the current price.

    Meanwhile, another analyst, Mikycrypto Bull, has identified a long-term ascending triangle formation dating back five years, which could theoretically launch ETH as high as $16,700.

    Adding to the bullish sentiment is a recent MACD crossover on the monthly chart, a signal that has preceded major rallies in previous cycles.

    However, while long-term technicals hint at explosive potential, short-term forecasts are more cautious.

    ETH must first break through $4,100 and hold above $3,700 to sustain its upward momentum.

    Corporate confidence grows amid market doubts

    Institutional and corporate adoption of Ethereum continues to grow.

    Firms such as SharpLink Gaming and World Liberty Financial have accumulated substantial ETH reserves in recent months.

    SharpLink now holds over 438,000 ETH and actively stakes its assets to generate passive income.

    World Liberty Financial has acquired over 77,000 ETH, with recent purchases near $3,294 per coin.

    These moves suggest that some institutions are positioning Ethereum as a long-term strategic asset.

    Their investments reflect confidence in Ethereum’s evolving role as foundational infrastructure for decentralised applications and finance.

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  • Bitcoin eyes $100K? Hayes cites treasury buybacks, weak dollar as catalysts

    Bitcoin eyes $100K? Hayes cites treasury buybacks, weak dollar as catalysts

    Bitcoin eyes $100K? Hayes cites treasury buybacks, weak dollar as catalysts

    • Bitcoin surged past $87,700, fueled by a weakening US dollar and potential US Treasury buybacks.
    • Arthur Hayes predicts Treasury buybacks could be a “bazooka,” pushing BTC past $100K (“last chance” below).
    • Weak dollar (lowest since March 2022) and rising gold correlation support Bitcoin’s appeal.

    Bitcoin’s recent climb, momentarily cresting $87,700, is drawing significant attention, with prominent analysts pointing towards macroeconomic shifts and potential government actions as key drivers that could propel the cryptocurrency well beyond the $100,000 threshold.

    The convergence of a weakening US dollar, anticipated US Treasury debt buybacks, and sustained institutional interest is painting an increasingly bullish picture for the digital asset.

    Macro tailwinds: dollar dips, treasury ‘bazooka’ eyed

    A primary factor supporting Bitcoin’s ascent is the declining value of the US dollar, which recently touched lows not seen since March 2022.

    As the dollar weakens, assets like Bitcoin often become more appealing to global investors seeking a hedge against fiat currency devaluation.

    Adding potent fuel to this narrative is the prospect of the US Treasury repurchasing its own debt.

    Arthur Hayes, the influential co-founder of BitMEX and current CIO of Maelstrom, has highlighted this potential move as a significant catalyst.

    He posited that upcoming Treasury buybacks could inject substantial liquidity into the financial system, effectively acting as a “bazooka” for Bitcoin’s price.

    Hayes went so far as to suggest this period might represent the “last chance” for investors to acquire Bitcoin below the $100,000 mark, anticipating that these buybacks could easily push the price past that psychological barrier.

    Technical signals and institutional trust bolster case

    The bullish sentiment finds resonance in technical analysis and continued institutional adoption.

    Ryan Lee, Chief Analyst at Bitget Research, noted that Bitcoin’s price chart recently completed a “descending wedge breakout,” a technical pattern often interpreted as supportive of further upward movement.

    This technical picture is complemented by Bitcoin’s growing correlation with gold, another traditional safe-haven asset, which itself has surged nearly 30% this year.

    Furthermore, global institutional appetite for Bitcoin appears unwavering despite recent price volatility.

    Reports indicate that investment firms, notably from Japan and the UK, have maintained their commitment, channeling capital into the cryptocurrency.

    This sustained institutional inflow signals enduring confidence in Bitcoin’s long-term value proposition.

    Analysts eye six-figure targets amid fiat expansion

    As Bitcoin tests resistance levels nearing $90,000, some analysts are setting their sights considerably higher.

    Jamie Coutts of Real Vision forecasts that expanding fiat money supply (M2) could drive Bitcoin to as high as $132,000 by the end of the year.

    This projection finds company with analysis from economist Timothy Peterson, who, citing historical market patterns, suggests Bitcoin could potentially reach $138,000 within the next three months.

    Political pressures add fuel to the fire

    The intricate macroeconomic picture is further complicated by the political landscape.

    President Donald Trump’s public calls for the removal of Federal Reserve Chair Jerome Powell have intensified market expectations of potential interest rate cuts.

    Such cuts, aimed at stimulating the economy, would likely exert further downward pressure on the US dollar, potentially creating an even more favorable environment for Bitcoin’s price appreciation.

    A note of caution amidst the bullish chorus

    Despite the confluence of positive indicators, some market observers urge caution regarding short-term price action.

    Analyst Michaël van de Poppe warned that weekend rallies can sometimes prove ephemeral and that Bitcoin might face a pullback before decisively conquering key resistance zones.

    The $91,000 level is widely seen as the next significant hurdle.

    Until Bitcoin firmly establishes itself above this mark, the possibility of short-term corrections remains.

    Nonetheless, the combination of weakening fiat dynamics, anticipated liquidity injections via Treasury buybacks, robust institutional support, and supportive technical patterns creates a compelling narrative for Bitcoin’s continued ascent towards, and potentially well beyond, the $100,000 milestone.

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  • Solana (SOL) And Shiba Inu (SHIB) Loses to The Hideaways (HDWY) as Price Predictions Look Weak

    Solana (SOL) And Shiba Inu (SHIB) Loses to The Hideaways (HDWY) as Price Predictions Look Weak

    Solana, Shiba Inu, and The Hideaways might gain more momentum in the coming days as per recent crypto price prediction reports.

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