Ethereum – Institutions scoop up $946M, but watch THIS metric for a shakeout!
- After significant buying pressure two weeks ago, the Ethereum spot ETF ended this past week with selling pressure.
- Retail investors and derivatives traders are maintaining buying pressure, adding positive sentiment to the market.
Ethereum’s [ETH] 21% decline over the past month could potentially be reversed as some level of bullish sentiment began to emerge.
However, at press time, ETH was down 0.49%. Buying activity from Korean and U.S. investors, alongside a surge in trading volume in the derivatives market, could help ETH regain strength and rally into the week.
Institutional investors taking profits
Market sentiment has gradually shifted among traditional institutional investors holding ETH, according to recent insights from Glassnode.
From the 10th to the 15th of February, the Ethereum spot ETF turned negative, with approximately 14,000 ETH—worth about $37.7 million at the press-time price of $2,695—being sold.
Source: Glassnode
Overall selling activity could be linked to profit-taking by institutional investors. This follows a predominantly bullish trading week before the 5th of February, a level last seen in December.
If this trend persists, ETH buying activity among traditional investors could resume with the new weekly open.
Korean and U.S. retail investors chime in
While traditional investors sold ETH last week, retail investors in Korea and the U.S. continued buying, as indicated by their respective indexes.
Korean retail investors remain the most bullish on ETH, with the Korea Premium Index staying above zero since the 14th of December. It read 4.7 at press time, a significantly high figure.
The Korea Premium Index measures buying and selling activity on Korean exchanges compared to other exchanges. A metric above zero indicates bullish sentiment, while below zero suggests bearish conditions.
Source: Cryptoquant
Similarly, U.S. retail investors have continued accumulating ETH, albeit in smaller quantities. This was reflected in the Coinbase Premium Index, which stood at 0.02 at press time.
If buying activity among both investor groups persists, it could further contribute to ETH’s bullish sentiment, pushing prices higher.
Derivatives traders are buying
There has been notable buying activity among derivatives traders. The Taker Buy-Sell Ratio, which compares buy volume to sell volume, read 1.033, indicating more buyers in the market.
A ratio above 1 signifies increased buying pressure among derivatives traders.
Source: CryptoQuant
This sentiment aligns with the Funding Rate, which turned positive and settled into 0.0090 at the time of press.
A positive Funding Rate suggests that buyers are dominant and willing to pay a premium to maintain market disparity in perpetual and swap exchanges.
