Ether futures have slipped into backwardation, hinting at an ether price fall. Some observers said the market anomaly could be short-lived, reports godbole17
, an abnormal condition in which futures trade below spot prices, indicating expectations the cryptocurrency will weaken in coming months. At press time, one-month ether futures listed on major exchanges traded at an annualized discount of 8% to 10% while the three-month futures traded at a discount of around 5%, according to data tracked by analytics firm Skew.
"The current state of backwardation reflects the general market view that ETH will fall following the Merge, but this could be short-lived," Katie Talati, director of research at Arca, said."We think ether's real price appreciation will happen after the Merge, driven by increasing ETH locked up staking/securing the chain."says the Merge will remove $40 million worth of miner selling from the market and lead to a 90% drop in annual issuance.
Some Ethereum miners have pushed back against the blockchain's transition, proposing to split the main Ethereum chain and continue the current PoW chain post-Merge. If that occurs, ETH holders will shift to Ethereum's new PoS chain and also receive the forked ETH PoW tokens for free. "The futures market will likely go into contango as traders unwind shorts after the merge," said Shiliang Tang, chief investment officer at digital asset investment firm LedgerPrime.
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