Dare We Say… ETH Season?
Whispers of an ETH season can be heard, and we believe there is merit to the idea with a tight invalidation.
Preview
TLDR
- ETHBTC reclaimed its 0.035 level, sparking renewed speculation about an "ETH season". Although there is a risk this level may not hold, we believe there is a trade here worth taking.
- CME ETH open interest has exploded to new all-time highs, indicating a significant shift in institutional sentiment despite BTC’s drawdown.
- ETHBTC could appreciate while ETHUSD remains under pressure, if BTC’s pullback continues with momentum. A choppy BTC would still facilitate a possible ETH season.
- ETH’s performance is tied to DeFi. We consider some DeFi tokens we expect to do well in their own right, but particularly well during an ETH season.
- We also consider some alternative chains that we expect will benefit greatly from a big ETH run.
