Institutional interest in Ethereum ($ETH) was alive, AMBCrypto reported. The decline in the prices of major altcoins has created an “attractive buying opportunity,” said Tom Lee, chairman of Bitcoin giant Bitcoin. $ETH financial company.
The company added 71,762 people $ETH Last week, the company’s balance sheet shrunk, rapidly approaching its “alchemy 5%” goal.
Institutional investors’ buying up isn’t enough to change opinion on the Ethereum market
There was hope for the acquisition of BMNR, but confidence is biased towards Bitcoin ($BTC) rather than Ethereum.
This became clear when comparing the net taker volumes of the two crypto assets. The 30 day moving average is $BTCNet taker volume remained positive despite a correction from $82,000 at the beginning of May.
Meanwhile, Ethereum is exhibiting “structural vulnerabilities,” analyst CryptoOnChain warned. Net taker volume peaked in early March but has fallen sharply since then, indicating that sellers have the upper hand.
The market has clear preferences $BTC That’s all $ETHand this is reflected in the 30-day moving average of net taker volume.
Sentiment reaches lowest level since 2023
The Coinbase Premium Index fell into negative territory towards the end of April and has remained there since then. The premium has fallen further in recent days following a 10.19% price correction over the past two weeks.
The taker buy/sell ratio measures the volume of takers or market orders to assess whether bears or bulls have the upper hand in the short term. Aggressive orders cause price movements and are a sign of persuasion of market participants.
Analyst Dirkforst observed that the weekly taker buy/sell ratio was 0.91, the lowest since 2023. This bearish bias in the futures market highlighted the pervasive negativity behind the market. $ETH recently.
It should be noted that the more aggressively the market positions itself on one side, the more likely it is to be squeezed in the opposite direction.
higher time frame $ETH The price structure was bearish. Since March, the bulls have been forced to abandon two short-term support levels around $21,000 and $22,000, as the price has collided with the seller’s bastion at $24,000 multiple times.
Price movements and on-chain capital flows highlighted the pessimistic mood around Ethereum that even the BMNR acquisition could not dispel.
Final summary
- Market taker volume shows that buyers are prioritizing Bitcoin over Ethereum.
- This factor explains the relative weakness of the latter, i.e., the lower the price, the stronger the trend may be.
