Ether Prices in Downtrend as Bitcoin Challenges $64K

Ether (ETH) is experiencing a downtrend in its prices as Bitcoin (BTC) reaches new highs above $64,000. The CoinDesk Indices Ethereum Trend Indicator has flipped negative, indicating a bearish shift in momentum. This decline in ETH prices is attributed to higher U.S. treasury yields, a stronger dollar, and geopolitical risks in the Middle East. The derivatives market is reflecting a risk-off sentiment, with funding rates turning negative and basis yields plunging. Short-term put options are more expensive than call options for both BTC and ETH. In the last 12 hours, liquidations have been evenly split between bullish and bearish futures bets, with long positions worth $31.1 million getting liquidated and shorts worth $36.49 million getting rekt. Despite being unable to break all-time highs, investors remain hesitant to turn completely bearish. The CoinDesk 20 index, measuring the performance of digital assets, is currently flat. Market experts suggest that the current sideways price action could set the stage for more explosive moves, with leveraged traders experiencing violent liquidation events. It may require additional time or catalysts to shift the sentiment back to bullish.