Ethereum’s native cryptocurrency, ether (ETH), has been experiencing sluggish momentum in recent weeks compared to bitcoin (BTC) following the conclusion of the United States presidential election. However, key metrics on Ethereum are painting a bullish outlook for the asset in the near term. According to analysis by CryptoQuant official EgyHash, factors such as Ethereum’s funding rates and Estimated Leverage Ratio suggest that traders are optimistic about ether’s profit potential.
The Ethereum Estimated Leverage ratio, which indicates investors’ tendency to execute high-leveraged derivatives trades, is currently at its peak, showing a sustained risk appetite among ETH traders. Additionally, Ethereum funding rates are moderately positive, meaning that long ETH positions are dominant but have not reached an extreme level. This suggests that there is still room for the price of ETH to increase without the risk of large-scale liquidations. The Korea Premium Index for Ethereum has also turned positive and is trading at a substantial premium, indicating growing interest in Ethereum among Korean market participants.
Moreover, Ethereum fund holdings have been steadily increasing, as seen in the United States spot Ethereum exchange-traded fund (ETF) market, which has recorded substantial inflows in seven out of the past nine trading days. Whales and large ETH investors have been aggressively accumulating the asset, reaching an all-time high of 57% in supply ownership despite the recent market correction. This indicates continued confidence among institutional and retail ETH investors.
Overall, these factors point to a persistent bullish outlook for Ethereum, with market participants showing readiness to maintain and potentially increase their exposure to the asset. Despite ETH trading at #3,344 at the time of writing, down 14% weekly and slightly up in the past 24 hours, the overall sentiment remains positive. Investors and traders are optimistic about the profit potential of ether, as indicated by key metrics on the Ethereum network.
In conclusion, despite the sluggish momentum of Ethereum’s native cryptocurrency, ether (ETH), in recent weeks compared to bitcoin (BTC), key metrics on the Ethereum network are showing a bullish outlook for the asset in the near term. Factors such as Ethereum’s funding rates, Estimated Leverage Ratio, and Korea Premium Index indicate growing interest and optimism among traders and investors. Additionally, Ethereum fund holdings have been steadily increasing, with whales and large ETH investors accumulating the asset. Overall, market participants appear confident in the future potential of Ethereum, signaling a positive sentiment towards the cryptocurrency.
