👍👍Will the 22% Crash in Ethereum Repeat? It Reached the Same Level 👍👍
Derivatives investor Gordon Grant warned Ethereum (ETH) investors about the risk of a similar decline that occurred at the beginning of August.
The largest cryptocurrencies by market value lost up to 20 percent of their value at the beginning of August. It seems that funding rates in perpetual Ethereum futures contracts have returned to the levels seen before the decline at that time.
Gordon Grant stated that perpetual futures markets are currently as vulnerable as in the past and that a sell-off could occur due to the increase in leveraged positions.
The Role of Different Factors
Ethereum's price fell by 22 percent in the following days after reaching $ 3,316 on July 29. Open position weighted funding rates have increased to 0.0116 percent, reaching their highest level since July 29.
The decline in August was largely attributed to the Bank of Japan's interest rate decision. Grant emphasized that futures markets are still vulnerable to a similar macroeconomic development.
According to Grant, factors such as a sudden loss of value in Nvidia and other successful stocks, a decrease in momentum in Chinese stock markets, or an increase in tensions in the Middle East could also negatively affect the market. He stated that such situations have the potential to cause a serious decline in the markets.
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