Matrixport Warns Ether’s Price Surge Lacks Fundamental Support
Ether's recent price rally is questioned by Matrixport, which indicates that the surge was driven by speculative futures positions rather than organic demand. Key points include:
- Last week's price increase made ETH vulnerable to a sharp decline.
- ETH experienced an over 8% drop during a sell-off following a U.S. airstrike on Iranian nuclear sites.
- Current trading is around $2,248, down from above $2,400 last week.
- Traders are hedging against downside risk, as evidenced by negative skew in ETH's 25-delta risk reversals for June to July expiries.
- QCP Capital notes an ongoing preference for downside protection in both BTC and ETH markets.