Today’s Ether (ETH) 10% dump caused its annualized futures basis to adjust after flirting with extremely optimistic territory. The basis indicator compares futures contracts price to the current level at regular spot exchanges.
Healthy markets usually display a 5% to 15% annualized basis, in a situation known as contango. On the other hand, a negative basis (futures premium) usually occurs during heavily bearish markets.
Volumes on regular spot exchanges provide insight into whether a trend is gaining or losing steam.
Even though it is natural for volume to recede after an intense hike, it should sustain a healthy level to support Ether levels above $420.
The Ethereum network has consistently been growing throughout the year. Regardless of a potential decentralized finance mania, there is an clear demand for block space.