Decline in Bullish Conviction for Ethereum in Futures Market; U.S Traders Remain Adamant on Altcoin
Ethereum, the second-largest cryptocurrency by market capitalization, recently experienced a decline in bullish sentiment in the Futures market. Despite a rapid rally from $3.2k to $3.7k, marking a 16.2% increase in just three days, the bulls were met with resistance at the $3.7k level, which had previously acted as a barrier.
The shift in sentiment was evident in the influx of ETH to exchanges on 8 April, indicating a change in investor behavior. Additionally, the Coinbase Premium Index, which measures the price difference between Binance and Coinbase, showed a decrease in bullish enthusiasm from U.S investors. This lack of conviction from the U.S market, coupled with a drop in daily on-chain transaction volume and network growth metrics, raised concerns about the short-term outlook for Ethereum.
Furthermore, Open Interest data reflected a bearish sentiment as ETH prices declined and Open Interest fell from $10.6 billion to $9.72 billion. The spot CVD also showed a downward trend, indicating that spot market participants were not fully convinced of a bullish turnaround yet.
Overall, the recent developments in the Ethereum market suggest a cautious approach from investors, with a focus on key resistance levels and market indicators to gauge the future direction of the cryptocurrency.
