The Ethereum spot ETF experienced a shift from significant buying pressure to selling pressure this past week, raising concerns among traditional institutional investors. Despite this, retail investors and derivatives traders continued to maintain buying pressure, injecting positive sentiment into the market.
Ethereum (ETH) saw a 21% decline over the past month, but signs of a potential reversal emerged as bullish sentiment started to surface. At the time of writing, ETH was down 0.49%, but buying activity from Korean and U.S. investors, coupled with a surge in trading volume in the derivatives market, could help ETH regain strength and potentially rally in the upcoming week.
Institutional investors were observed taking profits as the Ethereum spot ETF turned negative from the 10th to the 15th of February. Approximately 14,000 ETH, valued at around $37.7 million, was sold during this period. This selling activity was likely driven by profit-taking motives following a bullish trading week prior to the 5th of February.
While traditional investors were selling off ETH, retail investors in Korea and the U.S. continued to accumulate the digital asset. The Korea Premium Index, which measures buying and selling activity on Korean exchanges, remained above zero, indicating strong bullish sentiment among Korean retail investors. Similarly, the Coinbase Premium Index for U.S. investors stood at 0.02, reflecting ongoing accumulation of ETH.
Derivatives traders also showed notable buying activity, with the Taker Buy-Sell Ratio reading 1.033, signaling more buyers in the market. This ratio above 1 suggests increased buying pressure among derivatives traders. Additionally, the Funding Rate turned positive and settled at 0.0090, indicating that buyers are willing to pay a premium to maintain market disparity in perpetual and swap exchanges.
Overall, despite the selling pressure from institutional investors, the continued buying activity from retail investors and derivatives traders could help support ETH’s price and potentially drive it higher in the near term. It will be interesting to see how these dynamics play out in the coming weeks and whether ETH can sustain its bullish momentum. It’s no secret that the world is becoming increasingly interconnected, thanks to advancements in technology and communication. As a result, businesses are also expanding their reach beyond traditional borders and tapping into international markets. This trend has given rise to a new era of globalization, where companies are not only competing locally but also on a global scale.
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