Yesterday was monumental for the crypto community when Ethereum price broke above the $2000 level to a record high of $2,152. The price surge has been attributed to the increased network activity. However, Futures traders are betting on a more bullish run for Ethereum in the short-term, with $2,500 in view.
Ethereum Futures Traders Go Bullish
Ethereum made an all-time high yesterday after breaking above the $2,000 price level. Glassnode and santiment reported an increase in the network activity. The report from Glassnode reveals that the activity of retail investors on Ethereum has increased.
Some analysts anchored the price surge to Visa’s latest announcement regarding its deepened relationship withCrypto.com. Visa has decided to settle payments made on the Crypto.com Visa card using the USDC stablecoin. All this will be done on the Ethereum blockchain.
Investors’ appetite for the coming EIP-1559 proposal, which is scheduled for July, could have also triggered the price surge. The EIP-1559 upgrade poises to fix the surging network fees and also improve transaction efficiency.
Ethereum Futures Basis Hits ATH
Futures traders appear very optimistic that the price of Ethereum will rise to $2,500 in the short term. This is evident in the rising futures basis, which has reached an all-time high as well. The basis reflects the price difference between the spot market price and the Futures price.
In anticipation of the price surge, the Ethereum Futures basis has soared by 38%. This overconfidence from traders could later result in devastating liquidations and might later cause a decline in Ethereum price. It is not just Futures traders; the options markets are also going bullish on Ethereum.
As of this writing, Ethereumhas retraced from its intraday high of $2,152 and is trading around 2,122. This equates to a 5.66% rise in the last 24 hours. The market dominance of the second-largest cryptocurrency is currently at 12.43%.