- Ethereum’s leverage ratio and fund holdings signal rising trader and institutional confidence.
- Despite bearish indicators, Ethereum’s long-term potential remains supported by steady demand.
Following the U.S. election, Bitcoin [BTC] has enjoyed a notable bullish surge, capturing the spotlight. Meanwhile, Ethereum [ETH] has struggled to replicate this momentum, failing to reach a new all-time high despite its significant role in the blockchain ecosystem.
However, a closer look at Ethereum’s key metrics reveals a different story. Despite recent market corrections, several bullish indicators are emerging, suggesting that traders remain optimistic about the asset’s potential for future growth.
As Ethereum continues to evolve, its long-term outlook could be brighter than it appears at first glance.
Ethereum: What the metrics say
Source: Cryptoquant
Ethereum’s estimated leverage ratio has steadily risen, reflecting traders’ increased confidence in deploying leverage during bullish setups. This aligns with the metric’s peak levels, underscoring a sustained appetite for risk in derivatives trading.
Source: Cryptoquant
Supporting this, Ethereum’s funding rates have remained moderately positive, showcasing sustained demand for long positions as traders are willing to pay premiums to hold them.
This moderation implies that while long positions dominate, they are not extreme, leaving room for a healthy price increase without an imminent risk of large-scale liquidations.
Source: Cryptoquant
Furthermore, Ethereum fund holdings have surged to multi-month highs, reflecting strong institutional interest and continued confidence among both institutional and retail investors, even in the face of recent market corrections.
Consolidation amidst bearish pressure
Ethereum’s trading at $3,395.85 at press time – down 0.7% in the last 24 hours, as it continues to grapple with resistance at $3,500 and find support near $3,250. This marks a continuation of the recent downtrend triggered by a failed breakout above $3,750 earlier in December.
The market appears to be in a state of indecision, with the price range tightening amid mixed signals.
The RSI at 43.27 signals neutral conditions, though its position below the critical 50 mark leans towards bearish sentiment. Meanwhile, the MACD reveals a negative histogram, with the MACD line positioned below the signal line.
While this confirms bearish momentum, the narrowing histogram suggests selling pressure may be losing steam.
Volume analysis adds to the uncertainty, as trading volumes remain moderate, highlighting a lack of strong conviction from market participants.
Read Ethereum’s [ETH] Price Prediction 2024-25
The absence of significant spikes underscores the current consolidation phase, where both bulls and bears appear hesitant to make decisive moves.
Overall, Ethereum is at a crossroads. A successful push above $3,500 could reignite bullish sentiment and set the stage for recovery. Conversely, a breach below $3,250 would likely trigger further declines, exposing the asset to additional downside risks.
