Bloomberg analyst Mike McGlone expressed concerns about potential bearish effects for Ethereum in his latest analysis.
He pointed out that the first closing price of Ethereum futures listed on CME in the first quarter of 2021 was $1,752, which was the highest price seen in the first week of October this year and the highest price seen since August. The analyst suggests that this situation may have downward effects for ETH.
McGlone also noted that liquidity has dropped from around 80% to just under 40% since futures trading began. Despite the rally and positive liquidity in 2021, both trends have reversed, according to McGlone.
The Bloomberg analyst also noted that recently launched futures ETFs could push the price up in the short term, but since they allow greater access, they could also limit volatility and potentially upside performance.
McGlone argued that a sustained rise in ETH above the 100-week average, which sits around $2,000, could mean the first sign that ETH's strength is returning.
*This is not investment advice.