Key Points
- The ETH/BTC pair has reached its lowest point since 2021, prompting accumulation from investors, particularly in Korea and the U.S.
- Despite a recent drop, Ethereum [ETH] remains above $3,000, with derivative traders placing long bets on the cryptocurrency.
The ETH/BTC pair, which indicates the value of one Ethereum in terms of Bitcoin, has hit its lowest point since last year. This has led to investors, especially those from Korea and the U.S., to increase their holdings.
Market Interpretations
There are two main ways to interpret this movement. One perspective is that Bitcoin’s growing dominance could result in liquidity moving from Ethereum to Bitcoin as investor confidence shifts. The other viewpoint is that this could be an opportune time to acquire more Ethereum, with the belief that it is currently undervalued.
Recent metrics suggest that the latter scenario is more prevalent, with an increase in buying activity as investors capitalize on Ethereum’s perceived price dip.
Investor Accumulation
Despite the recent decline in the ETH/BTC pair, investors from both Korea and the U.S. have been actively accumulating Ethereum. This is evidenced by the Korean Premium Index and Coinbase Premium Index, which track the price differences between Korean exchanges, Coinbase, and other platforms. Both metrics are currently above their respective benchmarks, indicating strong buying pressure.
Furthermore, derivative traders in the Ethereum market are aligning with this buying trend. Data reveals that the Funding Rate, reflecting the balance between long and short positions in Futures markets, favored long positions. This suggests a bullish outlook, with traders expecting Ethereum to rise from its current price level.
In addition, the Taker Buy/Sell Ratio, which measures the volume of buy orders versus sell orders among market takers, has surpassed 1. This indicates strong buying activity and a market leaning towards upward momentum. If these trends persist, they could push Ethereum to higher levels, further strengthening the bullish sentiment in the market.
