Crypto Industry News:

According to the research firm Skew, the value of open, as yet unsettled Ethereum futures contracts exceeded $ 1 billion. This event occurs when the price of ETH rises and Ethereum 2.0 gives investors confidence in the long-term growth potential. Futures are considered to be the domain of more sophisticated traders, with commentators suggesting that "smart money" is feeling well which way Ethereum may go next.

The number of open futures contracts on Ethereum has increased by almost 30% since June 20. It is this "open interest" measure that measures the raw amounts that issuers and buyers play on futures contracts with future expiry dates. On the other hand, futures volume measures the value of existing futures contracts (which can be converted like any other derivative) traded during a given period.

The cryptocurrency exchange OKEx currently maintains the largest share of the Ethereum futures market at over USD 290 million. Huobi and BitMEX add over $ 200 million to the pool. In addition, the Huobi exchange recently announced that in the second quarter of this year. plans to launch options trading.

ETH futures contracts grew in early 2020, totaling nearly $ 900 million. It was so before the fears of the coronavirus and the subsequent crash of the US stock market took the world of cryptocurrencies with it. By mid-March, the value of open ETH futures had fallen to less than $ 400 million. Since then, open interest in ETH futures has grown steadily. Recently, it has been additionally fueled by price rises and the expansion of the DeFi sector.

Technical Market Outlook:

The ETH/USD pair has made a High-Tide Doji candlestick pattern at the top of the last wave up seen at $332.43. Since then the bears have managed to push the price little lower to make a pull-back towards the temporary low located at the level of $305.20. The bulls however reacted quickly and are trying to continue to up trend. The next target is seen at the level of $355 and the nearest technical support is located at the level of $305.20 and $300.00. There is only 3 days until the month's end and the current monthly candle looks bullish.

Weekly Pivot Points:

WR3 - $435.28

WR2 - $378.51

WR1 - $351.41

Weekly Pivot - $292.40

WS1 - $265.43

WS2 - $206.30

WS3 - $178.38

Trading Recommendations:

The volatility on Ethereum is higher than usual, so all the dynamic moves up and down might reverse quickly. The larger time frame trend on Ethereum remains down and as long as the level of $365 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred. The key long-term technical support is seen at the level of $174.82.