Ethereum (ETH) has faced a 21% decline over the past month, but recent signs of bullish sentiment could point to a potential reversal. At the time of writing, ETH was down by 0.49%, but there are key indicators suggesting the cryptocurrency may regain its strength as the week progresses.
Institutional Investors’ Profit-Taking
According to Glassnode, institutional investors holding ETH have shown signs of profit-taking. Between February 10 and 15, Ethereum’s spot ETF turned negative, with about 14,000 ETH—worth around $37.7 million—being sold. This selling activity, primarily from traditional institutional investors, follows a generally bullish trend seen prior to February 5. If this trend continues, it could open the door for new buying activity among traditional investors as the new weekly open unfolds.
Bullish Sentiment from Retail Investors in Korea and the U.S.
While institutional investors have been selling ETH, retail investors in Korea and the U.S. have remained active buyers. The Korea Premium Index, which measures ETH buying and selling activity on Korean exchanges, has stayed above zero since mid-December, indicating strong bullish sentiment. As of press time, the index read 4.7, a notably high figure.
In the U.S., retail investors have also continued to accumulate ETH, reflected in the Coinbase Premium Index, which stood at 0.02. While buying activity in the U.S. is smaller compared to Korea, it still suggests continued interest in Ethereum, potentially adding to bullish momentum if this trend persists.
Derivatives Market Shows Increased Buying Pressure
Derivatives traders have also shown strong buying interest. The Taker Buy-Sell Ratio, which compares buy to sell volume, has risen to 1.033, signaling increased buying pressure. This aligns with the positive Funding Rate of 0.0090, which further indicates that buyers are dominating the market.
Also Read: Ethereum Price Forecast: Will ETH Break $3,000 or Face a Market Pullback?
If these factors continue to play out, Ethereum could see a significant price rebound, especially as buying activity from retail investors and derivatives traders persists.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
