Ethereum (ETH) price has seen a slight dip in the past two days after experiencing bullish volatility earlier this week. The large-cap altcoin, with a fully diluted valuation of approximately $530 billion, dropped over 3 percent in the last 24 hours to trade at around $4.4 on Friday, August 15, during the mid-North American session.
Bullish Sentiment for Ethereum Price
The macro bullish sentiment for Ethereum is supported by the notable surge in its futures Open Interest (OI) from about $18 billion in April this year to around $62 billion in August. On-chain data indicates a renewed demand for Ether by institutional investors, particularly those in the U.S. spot ETH ETFs.
Additionally, there is an increasing implementation of Ether treasury strategies by corporations. For example, SharpLink Gaming recently announced that it now holds 728k ETH valued at over $3.3 billion. Similarly, BitMine acquired additional Ether valued at around $130 million, bringing its total holdings to $5.26 billion.
Midterm Bearish Market Tone for Ether
As the Ether price approaches overbought levels near its all-time high, market data analysis from CoinGlass shows that Ethereum’s Funding Rate has turned negative. This indicates a midterm bearish sentiment from futures contracts traders.
Furthermore, the rising number of validators exiting the staking market has exacerbated the midterm bearish tone for Ether. Data from everstake reveals that more than 767,000 ETH valued at $3.490 billion are waiting to leave the network.
What’s Next for ETH Price?
Ethereum price has undergone a mid-term correction in the past two days to retest a critical support level around $4.4k. In the four-hour timeframe, the ETHUSD retested the 50 Moving Average Simple (SMA) and a rising logarithmic trend established since the beginning of August.
According to crypto analyst Ali Michaël van de Poppe, the ETH price has entered a buy zone following a 3.5 percent drop in the last 24 hours. The macro bullish outlook for ETH remains strong, fueled by favorable crypto regulations and renewed demand from institutional investors.
In conclusion, while Ethereum’s price has cooled off slightly in the past few days, the overall sentiment remains optimistic. With increased institutional interest and strategic treasury maneuvers by corporations, Ethereum continues to be a top choice for investors looking to capitalize on the potential of blockchain technology.