[Analysis] Ethereum (ETH) Shows Signs of Cooling in Futures Market... Further Decline vs. Bottom Fishing 'Divergent Views'

Ethereum (ETH) futures premium has fallen to its lowest level in a year, sparking mixed opinions about the possibility of bottom fishing. Market experts are cautious about whether a bottom has formed.

On the 28th (local time), according to cryptocurrency specialist media Cointelegraph, the price of Ethereum fell by 9.3% from the 26th to the 28th, testing the $1,860 level again in two weeks. During this process, leveraged positions worth approximately $114 million were liquidated, and the futures premium fell to about 2% compared to spot.

Typically, Ethereum futures carry a premium of about 5-10% over spot to reflect the risk of longer settlement periods and the opportunity cost of capital. The recent drop in premium to 2% suggests that leveraged buying sentiment has significantly weakened.

Meanwhile, market participants believe it is too early to say that Ethereum has hit bottom. The media analyzed that "the decrease in activity on the Ethereum network and the spread of Layer 2 are weakening the fee profitability of the base chain, which could lead to an increase in ETH issuance and a decline in staking yields in the long term."

There is also an opinion that the upcoming Pectra upgrade next month could be a major variable. The Pectra update aims to improve Ethereum's fee structure and user experience. However, there are also forecasts that it will be difficult for Ethereum to catch up with the overall altcoin yield before the upgrade.