Ethereum Rally to $3,700? Derivatives Metrics Doubtful
Ether traders faced a significant jolt as its price neared $3,500 on June 11, causing $90 million in leveraged long positions to be liquidated within two days. This decline was largely driven by macroeconomic trends, such as updates from the U.S. Federal Reserve and jobless claims data, prompting a shift towards bearish sentiment. Two specific metrics reflect this negative outlook among Ether investors.
The U.S. Federal Reserve’s latest projections provide some insight into the recent dip in ETH prices. Released on June 12, these projections showed that four officials did not anticipate any changes in interest rates until the end of 2024, whereas the remaining 15 officials expected one or two cuts by year-end. This was less enticing for investors seeking high-risk assets, as it reduced the incentives to divert from fixed-income investments. Fed Chair Jerome Powell reiterated that decisions would continue to be driven by labor market conditions and price stability.
On June 13, the U.S. Labor Department reported a surge in new unemployment benefits claims to a 10-month high of 242,000 for the previous week. Oliver Allen, a senior economist at Pantheon Macroeconomics, noted that high long-term rates, tight credit conditions, and gradually softening demand were increasingly impacting businesses, particularly small enterprises. Generally, weak macroeconomic indicators are seen as favorable for risk-on assets like Ether, as persistently weak economic conditions could push the Fed to consider rate cuts sooner. This doesn’t guarantee that investors will flock to cryptocurrencies under economic stress, and the lack of a U.S. spot Ether ETF adds to the uncertainty.
Journalist Eleanor Terrett from Fox Business reported that Gary Gensler
19 thoughts on “Ethereum Rally to $3,700? Derivatives Metrics Doubtful”
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How can the Fed’s projections swing the market so drastically? Not cool, Fed.
Ether ETF when?? The uncertainty with the lack of a U.S. spot ETF just adds
ETH nearing $3,500 only to face a purge of $90M in leveraged longs is intense! Gotta stay alert in this market!
Solid analysis. The interconnectedness of macroeconomic trends and crypto prices is mind-blowing! 🔄📉
These projections from the Fed are wreaking havoc on my portfolio. Can’t catch a break. 😔📉
The Ether market may be down now, but with every dip, there’s an opportunity!
Wow, what a rollercoaster for Ether traders! 🌪️ Despite the dip, I believe in the long-term potential of ETH! 🚀
Those macroeconomic trends sure have a strong impact on the market. Interesting times ahead!
Why is crypto still so volatile? I thought Ether was supposed to be more stable.
Market sentiment is just so bearish right now. Where’s the optimism gone?
I trusted the market trend, and this is how it repays me. Awful week to be an Ether investor. 😠💥
Leverage can be a killer. Learned it the hard way with this recent ETH crash. 😓⚡
Honestly, who can say they saw this coming? This macroeconomic stuff just tanked my holdings. 😖😩
Wow, the ripple effect of possible interest rate cuts on ETH is fascinating.
Its always fascinating to see how global events and policy changes influence crypto. Hang in there, ETH hodlers!
Ugh, this Ether drop was brutal. All my leveraged positions got wiped out.
Jerome Powell’s comments and those jobless claims sure shifted the sentiment quick! Great insights.
Cant believe I lost so much in just two days. This is a nightmare for Ether traders.
I never thought jobless claims data could have such a profound effect on ETH. Learning something new every day! 📚🙌