TLDR
- Those with a keen eye on the market are expanding their stake in Ethereum futures.
- ETH's value has hovered around $2,068, even as Bitcoin has seen its value double over the span of three years.
- Market insiders believe ETH could soon hit the $2,400 mark, indicating a notable 22% leap.
- Holders and developers have been stressed by the Ethereum Foundation's current path of innovation.
- Ethereum still shines with its impressive total value locked and presence in the stablecoin arena, despite facing hurdles.
For months, Ethereum's value seemed stuck, but now institutional investors are forecasting a shift. The Commodity Futures Trading Commission highlights that savvy traders deem the price undervalued and are bolstering their bets on Ethereum futures.
Interest in digital assets from institutional circles remains undiminished. Leading firms such as Citadel Securities, Susquehanna International, and Jane Street Capital are actively engaged in the crypto space.
The CFTC rolls out a weekly Commitment of Traders report that shines light on crypto investing trends. This document is key for maintaining market clarity.
The latest Commitment of Traders figures, wrapping up March 25, reveal that strategic traders saw Ethereum's $2,068 price point as undervalued. They have incrementally increased their positions over the last several weeks.
Technical Analysis
Ethereum's valuation has seen little movement since March, hinting that major investors still see it as prime buying territory.
In comparison to Bitcoin and other cryptos, Ethereum has lagged behind. Over three years, Bitcoin skyrocketed over $82,244. Ethereum saw a 32% dip in the same timeframe.
Though Ethereum's price might face further dips, futures data points to institutional confidence in a climb to $2,400. This possibility equates to a 22% jump.
Ethereum stakeholders have expressed frustration with the Foundation's priorities. Developers are in pursuit of quicker and more affordable transactions. They wish for more projects native to Ethereum to gain traction.
The Foundation has steered towards research aligning with fundamental principles such as open source, privacy, security, and resistance to censorship, staying indifferent to Ethereum-native initiatives.
Optimism was in the air during October 2024's ETH San Francisco as hopes mounted for Foundation responsiveness, temporarily boosting the price, which has since plateaued to late 2023 figures. of ETH Rob Hadick, a partner at Dragonfly, a crypto venture firm, expressed concerns about ETH's sluggish performance compared to BTC and SOL.
Hadick raised concerns over 'value capture, protocol revenue, and fees.' He commented on the parasitic dynamics of Layer 2 solutions towards Layer 1 chains, adding to the skepticism concerning the Ethereum Foundation's assertions.
Despite the obstacles, Hadick argues for ETH acquisition, citing Ethereum's substantial lead in total value locked, values secured, stablecoins, and real-world assets as key advantages.
The Commitment of Traders report refrains from identifying individual trading entities but provides insight into the most active groups in the market.
Ethereum futures contracts surged by 336%, climbing from about 3,500 at the start of November to surpassing 15,000 presently, a momentum boosted by interest following President Trump's election.
Dealer firms have increased their ETH Trading powerhouses, including liquidity providers and firms focusing on quantitative strategies, usually offload crypto futures to dealers taking the other side.
Ethereum futures have continuously climbed post-Trump's election into 2025, with 11,819 contracts added last year and another 2,700 this year, indicating that savvy investors are wagering on ETH's bullish move.
Journalist Maisie is known for her work in the crypto and financial news space, contributing to platforms like Moneycheck.com, level-up-casino-app.com, and Computing.net, and is the Editor in Chief at Blockfresh.com.
