- The average daily trading volume in the Ethereum derivatives market has fallen to new lows in 2023.
- After the Shanghai upgrade, liquidity has gradually drained from the futures markets.
In the current cycle, activity can be observed in Ethereum [ETH] Derivatives markets have fallen below levels seen in 2021 and 2022. glass node found in a new report.
Read Ethereum [ETH] Price prediction 2023-24
According to the on-chain analytics firm, the average daily trading volume on Ethereum’s futures and options markets has dropped to just $14.3 billion, “roughly half the average volume over the past two years.”
Between 2021 and 2022, the average daily trading volume on these markets was $26.08 billion. Glassnode noted that last week’s average daily trading volume was less than $10 billion due to increasing liquidity outflow.
Source: Glassnode
No more speculative events driving futures markets?
Ethereum futures markets saw increased activity in anticipation of the April 12 Shanghai upgrade. According to data from glass nodeOpen interest in Ethereum futures, tracked by a small 30-day moving average, was up 10% between January 1st and April 12th.
When Shapella went live, open futures positions totaled $5.18 billion. However, with many viewing the upgrade as the last major speculative event for the asset, futures market participants began liquidating their positions.
This led to a steady decline in open interest. On September 4, it was $4.32 billion, down from the January 1 level.
Source: Glassnode
The Ethereum options market, on the other hand, performed extremely well, Glassnode noted. According to the report, this market has seen a year-to-date increase in daily trading volume of over 256%. On September 4, it was $5.48 billion.
On the spot market…
At press time, the ETH transaction price is $1,621, according to the data CoinMarketCap. As accumulation slows among day traders, ETH’s key momentum indicators are pointing to increasing sell-offs.
Is your portfolio green? Check out the ETH earnings calculator
On a daily chart, the coin’s Stochastic RSI (StochRSI) is showing a downtrend since August 31st. At press time, the indicator’s %K line (blue) was below 50 at 46.08. In a bearish position, ETH’s distribution continues to outpace accumulation.
Likewise, the coin’s on-balance volume (OBV) has been declining since mid-August. At press time, it was 23.971 million, down 1% over the past three weeks. When an asset’s OBV decreases in this way, it means that the selling volume exceeds the buying volume.
Source: ETH/USDT on TradingView
Comments are closed.