Ethereum Battles Bearish Retail Sentiment Amid Surging ETF Demand
Ethereum (ETH) price continues to experience recent pullback Test of $4,000 resistancea key psychological price mark for cryptocurrencies. Amid this correction, the bearish bias among Binance investors has emerged.
the latest one analyze CryptoQuant analyst Darkfost highlighted an important trend, namely that Binance’s Ethereum taker-to-buy ratio turned “sharply negative” at the $4,000 mark. This suggests that traders on the exchange have primarily taken a selling stance.
Ethereum tug of war
According to Duck Foster, bearish sentiment Volatility on Binance has persisted since early November, coinciding with Ethereum approaching this key resistance level.
The analyst noted that while such bearish sentiment may often signal a potential reversal, Ethereum’s price action is not showing a highly bearish bias, driven by other influencing factors.
Notably, demand for Ethereum exchange-traded funds (ETFs) has surged, indicating growing institutional interest that continues to support Ethereum’s price action.
The surge in demand for Ethereum ETFs signals a shift in market stance, with institutional players increasingly Affect price changes.
Continued inflows into Ethereum-focused investment products prove that institutional interest is critical to offset the selling pressure observed by Binance retail traders.
ETH market performance and outlook
Ethereum’s price has corrected significantly so far, falling to $3,616 as of today. As of this writing, the asset is currently trading at $3,621, down nearly 6% from the past day.
Notably, this price performance has unsurprisingly reduced the asset’s market capitalization by over $40 billion, from over $490 billion last Friday to $434 billion today.
Interestingly, despite the price drop, Ethereum’s daily trading volume has seen the opposite trend, rising from less than $60 billion on December 6 to $72 billion now. Considering the current market conditions, ETH trading volume is likely to be on the horizon from the sell-off.
according to data Coinglass data shows that 526,828 traders were liquidated in the past 24 hours, with a total liquidation of $1.58 billion. Of the total liquidations, ETH accounted for approximately $234.72 million.
Long liquidations dominated, reaching $208.83 million. Liquidations of ETH by short traders also resulted in losses worth $25.89 million.
Regardless, analysts believe still optimistic Regarding Ethereum, this suggests that the current price drop is quite “healthy” for the ETH market.
$ETH HTF is still going strong!#Ethereum Weekly health fixes will serve as retests and pump hard! https://t.co/o78x8eBucf pic.twitter.com/YSixFqjuLQ
— EᴛʜᴇʀNᴀꜱʏᴏɴᴀL
(@EtherNasyonaL) December 10, 2024
Featured image created using DALL-E, chart from TradingView
