Ether (ETH) price brutal below the $3,000 support on Sept. 20 as global markets entered a gamble-disfavor mode. The Invesco China Technology ETF (CQQQ) closed down 4.2%, while the SPDR S&P Metals and Mining ETF (XME) lost 3.8%.

Some analysts pointed to the potential ripple effects of the default of Evergrande, a major Chinese real estate visitor. In dissimilarity, others blame the ongoing debates over the debt limit in Washington as the catalyst for this calendar week's volatility. Every bit a result, the CBOE Volatility Index (VIX), usually referred to as the "stock market fright alphabetize," jumped by more than 30% to reach its highest level since May.

On Sept.xix, Usa Treasury Secretary Janet Yellen chosen for Congress to heighten the U.S. debt ceiling once more in a Wall Street Periodical op-ed. Yellen suggested that fugitive this would run a risk causing the regime to default on payments and generate a "widespread economical catastrophe."

I of the major focuses for traditional markets is this week'south U.S. Federal Open Marketplace Committee meeting, which ends on Sept. 22. At the meeting, the Federal Reserve is expected to signal when it volition cut dorsum its $120 billion monthly asset purchase program.

How these events affect Ether toll

Ether toll in USD at Bitstamp. Source: TradingView

Even though the $3,000 level sits almost the lesser range of the previous performance of the by 45 days, Ether notwithstanding accumulated 210% gains in 2022. The network's adjusted full value locked (TVL) jumped from $13 billion in 2022 to $60 billion and the decentralized finance (DeFi), gaming and nonfungible token (NFT) sectors experienced an impressive surge while Ethereum maintained dominance of the sector'due south market share.

Despite mean gas fees surpassing $20 in September, Ethereum has kept roughly 60% of the decentralized commutation (DEX) volume. Its largest competitor, Binance Smart Concatenation, held an average daily volume slightly below $1 billion, albeit having a transaction fee below $0.40.

Ether futures data shows pro traders are still bullish

Ether's quarterly futures are the preferred instruments of whales and arbitrage desks due to their settlement engagement and the cost difference from spot markets. Withal, the contract'southward biggest advantage is the lack of a fluctuating funding rate.

These fixed-calendar month contracts usually merchandise at a slight premium to spot markets, indicating that sellers request more money to withhold settlement longer. Therefore, futures should trade at a 5% to 15% annualized premium in healthy markets. This situation is technically defined as "contango" and is not exclusive to crypto markets.

ETH futures 3-calendar month annualized premium. Source: Laevitas

As displayed in a higher place, Ether'due south futures contracts premium spiked to 15% on Sept. 6 every bit ETH cost tested the $4,000 resistance. Apart from that brief overshot, the ground indicator ranged from viii% to 12% over the past calendar month, considered healthy and bullish.

The crash to sub-$3,000 in the early hours of Sept. 21 was non plenty to scare seasoned traders. More than importantly, U.Southward. Securities and Substitution Commission chairman Gary Gensler'southward interview on cryptocurrency regulation too had no noticeable impact on Ether cost. Had at that place been a generalized fear, Ether futures premium would take reflected this.

The views and opinions expressed here are solely those of the author and do not necessarily reverberate the views of Cointelegraph. Every investment and trading move involves chance. Y'all should conduct your ain research when making a conclusion.