Ethereum: To buy or not to buy? The third point might save your portfolio
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
The entire cryptocurrency market is still reeling following the crash triggered by Terra UST‘s depegging fiasco. As explained in one of our earlier articles, even the flagship Bitcoin has been stuck in a narrow range ever since the crash and is showing no signs of any major recovery yet. And, Ethereum seems to be no different.
Technically speaking, there’s little to no chance of recovery in the short term for the top altcoin. In fact, a closer look at the last few weeks shows that it is currently in the process of jumping about in a descending triangle and a convincing breakdown below the bottom trendline can have catastrophic consequences.
ETH/USDT | Source: Tradingview
It must also be noted that despite Ethereum blockchain’s Ropsten testnet’s successful ‘merge’ – moving from the PoW execution layer to the Beacon Chain’s PoS consensus chain on 8 June – it has had no effect whatsoever on the price (or optimism) regarding the coin.
Thus, even though there’s nothing wrong – ironically it seems, people are beginning to fear the market and especially its volatility.
Yes, this could be one possible answer from a variety of reasons that could be behind Ethereum’s lackluster performance on the charts. For example, Ethereum Perpetual Futures open interest has been dipping over the past few days, ever since the beginning of June in fact.
It suggests that derivatives traders are cutting down their exposures to the asset fearing, most probably, on-coming volatility and mitigating some of the risks.
Futures Open Interest Perpetual | Source: Glassnode
Along with that, Ethereum Perpetual Futures volumes have
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