- The Ethereum ETF spot ended the week under selling pressure after experiencing significant buy-pressure two weeks prior.
- The market is gaining momentum as retail investors and traders of derivatives continue to buy, contributing positively to its sentiment.
Ethereum’s [ETH] Bullish sentiment has begun to appear, and the decline of 21% over the past 30 days could be reversed.
At press time, ETH’s price was down 0.49%. Buying by Korean and U.S. traders, combined with a rise in derivative trading volumes, could be enough to help ETH regain momentum and gain strength into next week.
Profits taken by institutional investors
According to Glassnode’s recent research, the market sentiment among institutional investors who hold ETH has slowly changed.
From the 10th to the 15th of February, the Ethereum spot ETF turned negative, with approximately 14,000 ETH—worth about $37.7 million at the press-time price of $2,695—being sold.
Glassnode
The overall selling could be attributed to institutional investors taking profits. The recent bullish week of trading before the 5th February has brought prices to a high level not seen since December.
The new weekly opening could see a resurgence of ETH purchases by traditional investors if this trend continues.
Korean retail investors and U.S. retailers speak out
Retail investors continued to buy ETH in Korea and America, according to their respective indexes.
Since the 14th December, the Korea Premium Index is above zero. This shows that Korean investors are the most optimistic about ETH. The number was 4.7 when the press went to print, an extremely high value.
The Korea Premium Index compares the buying and selling activities on Korean exchanges to those of other exchanges. Above zero, the metric indicates bullish sentiment. Below zero is bearish.
Cryptoquant
Similarly U.S. retailers have also continued to accumulate ETH, albeit at a smaller scale. Coinbase Premium Index was 0.02 as of the press date.
The price of ETH could rise if both groups continue to buy.
The derivatives market is buying
A notable increase in buying by derivatives traders has occurred. The Taker-Buy-Sell ratio, which compares the buy volume with the sell volume, was 1.033. This indicates that there are more buyers on this market.
If the ratio is above 1, it indicates that derivative traders are under increased pressure to buy.
Source: CryptoQuant
At the time this article was published, the funding rate had turned positive.
A positive funding rate indicates that buyers dominate and are willing and able to pay premiums to maintain the market gap in swap and perpetual exchanges.
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Source: ambcrypto.com
