Key Points
- Crypto exchange Bybit’s recent purchase of ETH indicates a bullish market trend.
- The derivatives market reflects a positive sentiment for ETH despite recent hack incidents.
Crypto exchange Bybit has recently increased its purchase of Ethereum (ETH), a move that is generally seen as a positive sign for the market.
Ethereum Shows Bullish Signs
Ethereum has been showing bullish tendencies. Over the last day, the digital asset has seen a 3.79% increase, reflecting this market movement.
The recent purchase of ETH by Bybit, coupled with increased buying activity in the derivatives market, indicates that the asset might recover from its weekly loss of 17.84%.
Bybit’s Purchase of ETH
Data from Lookonchain reveals that Bybit has started buying ETH. In the past 24 hours, the exchange purchased $297 million worth of ETH in two stages. The first purchase was 36,893 ETH at $2,711, amounting to around $100 million. In the second phase, Bybit bought 71,755 ETH, worth $197 million.
Such large-scale buybacks usually signal a bullish move for ETH, as reflected in its 3.79% price increase in the past 24 hours. However, this comes after the largest crypto hack in history, where over 490,000 ETH, worth $1.46 billion, was stolen from exchanges.
Rebalancing of the Spot Market
Several key metrics that usually suggest a bearish scenario have surged. However, this could indicate that the market is regaining balance after the hack.
Since February began, the total amount of ETH available on exchanges has fallen significantly from 19.7 million to 18.5 million. A decrease in exchange reserves is typically bullish for the asset, as demand rises.
In the past 48 hours, there has been a slight increase in available ETH on exchanges, which would usually indicate a bearish trend. However, given the recent massive outflow of ETH, it suggests the market is stabilizing.
Derivatives Market Buying
The derivatives market provides a clearer view of market sentiment. Currently, Funding Rates and Open Interest have turned bullish, meaning traders are opening long positions despite the recent hack.
The Funding Rate across all exchanges on CryptoQuant has moved into bullish territory, with a reading of 0.0020. A positive Funding Rate suggests that traders are confident in their long positions.
Open Interest, which tracks the total amount of unsettled derivative contracts, has also surged by 10.33% in the past 24 hours to $16.38 billion. Combined with a significant increase in buying volume in the derivatives market, this indicates that most unsettled derivative contracts are likely buy positions.
Despite the hack, ETH remains in a bullish phase. Monitoring the derivatives market could provide further clarity on its next move.
