Despite Merge’s Sell-Off Ethereum Price Indicators Point to Buy

After the switch to proof-of-stake on the blockchain, the price of Ethereum (ETH) was predicted to skyrocket (PoS). Derivatives data on Ethereum shows that there are still possibilities to make money with the second most valued asset in the cryptocurrency market, despite the fact that many people have sold off large amounts of ETH to cash in on gains.

Derivative Volumes Remain Stable Post Merge

One of the most anticipated events in the history of the cryptocurrency industry was the Ethereum Merge, which completed the blockchain’s switch to PoS. The Merge received a lot of attention because of the opportunities it presented for investors to stake their ETH and make passive income, as well as the functional improvements it would bring to the smart contract network.

Investors flocked to ETH as a result, utilizing derivatives to bet on the asset’s price. In August, open interest in Ether futures hit $8 billion, making it the largest cryptocurrency market cap ever.

Between September 1^st and 14^th, notional ETH trading on Derbit reached over $5 billion, with the vast majority of that volume coming from institutional investors. These financial establishments engaged in over-the-counter speculative block trading. With more institutions taking use of the Ethereum blockchain’s decreased energy usage and the possibility to stake ETH, the Bank of America predicted that the Merge will witness a rush of institutional adoption for ETH.

There is now $6.87 billion in open interest in ETH futures contracts. Moreover, much of the volume trade in derivatives appears to have happened after the Merge, despite the fact that the asset’s price has fallen since then. After the Merge, data shows that block transactions still accounted for over 40% of the asset’s trading volumes, despite the fact that trading volatility had decreased.

Cryptocurrency Prices Dampened by Macroeconomic Factors

Gains in institutional interest should encourage bullish predictions for ETH’s value. The market, however, is not in the best of health. Although the Merge was anticipated to boost coin values, it has not done so thus yet.

The dollar’s continued surge versus the world’s other main currencies has led to a sharp drop in the value of cryptocurrencies. Most major cryptocurrencies are currently experiencing bear runs, and the cryptocurrency market as a whole is down by 5.76 percent in the previous 24 hours.

The market will be watching for the Bureau of Economic Analysis to deliver its data on consumer spending this week. This research will show how inflation has changed people’s buying patterns in the United States.

The general assumption is that consumer spending will drop into negative territory in August due to higher-than-anticipated inflation. In this scenario, the dollar’s ascent may be slowed, giving digital currencies a chance to recover.

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Given the novelty of the coin, the $4.36 million in 24-hour trading volume is indicative of substantial investor interest. TAMA delivers a plethora of profit prospects for investors, and the whole Tamadoge platform is scheduled to release by the end of the year.

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