Ethereum faces increased bearish sentiment as traders show a preference for safe-haven assets amid rising market risk aversion. While Bitcoin and Ethereum prices remain stable, U.S. stock index futures have weakened, leading to a shift towards gold and silver. Despite this, the altcoin sector has seen some gains, with LayerZero's ZRO token rising 12% and TRX and DASH each up by about 3%.
Derivatives data reveals a bearish bias for Ethereum, with short-term and near-term put options priced higher than those for Bitcoin, according to Deribit. This suggests traders are more pessimistic about Ethereum's near-term prospects. Additionally, the market shows a preference for Bitcoin straddle options and Ethereum bear spread strategies, indicating expectations of volatility and further downside for Ethereum.
Bearish Sentiment Grows for Ethereum as Traders Favor Safe-Haven Assets
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