Key Points
- Ethereum witnessed a decline in bullish sentiment in the futures market.
- The Coinbase Premium Index indicates that U.S traders remain steadfast about the altcoin.
Ethereum [ETH] experienced a rapid rise from $3.2k to $3.7k, marking a 16.2% increase in three days. Still, it faced resistance at the same near-term level as a month ago – $3.7k.
This local peak coincided with a significant influx of ETH to exchanges on 8 April. Despite the previously bullish sentiment, a shift has been observed over the last 24 hours.
Coinbase Premium Index and Market Sentiment
The Coinbase Premium Index, which measures the price difference (USDT pair) between Binance and Coinbase, has dropped since 5 April, indicating higher Binance ETH prices. This suggests a lack of bullish momentum from U.S. investors who are unable to trade on Binance and must rely on Coinbase. Despite the sharp rise to $3.7k, sentiment on the western side of the Atlantic remains subdued.
The ratio of daily on-chain transaction volume in profit to loss metric from Santiment jumped to 3.01 on 8 April. This metric has been capped at 3 since February, so traders could monitor this metric’s daily readings to anticipate potential short-term price drops.
Spot and Futures ETH Markets
Daily active addresses and network growth metrics saw a decline on 30 March and have continued to trend lower over the past ten days. This indicates a lack of user adoption and organic demand for Ethereum. This leads to the question – what is the short-term sentiment like in the spot and Futures ETH markets?
When ETH was rejected at $3.7k, the Open Interest also dipped. Over the last 36 hours, the OI has decreased from $10.6 billion to $9.72 billion. A drop in prices, along with the Open Interest, seems to suggest a bearish sentiment.
The spot CVD also started to decline, but it hasn’t retracted all the gains it made since the 8th. That said, the period from 26 March to 8 April saw Ethereum’s spot CVD trend downwards. This suggests that spot market participants are not fully convinced yet, but there could be a turnaround if ETH breaks past the $3.7k-mark.
