ETH readies to reclaim $4.5K as futures markets stabilize from crypto flash crash

ETH has seen a sharp price recovery, bolstered by stabilized perpetual contracts and reduced market fears, indicating a potential push towards $4,500. Following a sharp 20.7% flash crash that resulted in $3.82 billion in leveraged long liquidations, the initial panic has subsided. The funding rates for perpetual futures have turned negative, suggesting an unsustainable situation for short sellers, which reflects increasing trader caution. Despite lingering concerns about exchange solvency and mismanagement, the ETH derivatives market is slowly returning to normal. Balanced activity in the options market indicates resilience, as put options are slightly lower than call options, pointing to a healthy trading environment. Comparatively, other altcoins faced deeper corrections during the crash, highlighting ETH's relative strength, particularly its substantial spot ETF assets and options open interest. Ethereum's outlook remains positive as confidence is gradually restored, setting the stage for a potential recovery towards the $4,500 mark.

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