Maarten Regterschot, a CryptoQuant contributing analyst, pointed out a significant trend in the Ethereum (ETH) market.
His observations reveal a "systemic buying" pattern in Ethereum futures that is characterized by a noticeable increase in open interest.
Specifically, Ethereum futures have seen an addition of $700 million so far, indicating a strategic accumulation of assets over a period.
TWAP, or time-weighted average price, is a strategic approach employed primarily by large-scale traders or institutional investors.
It involves spreading out the purchase of assets over a specified period to achieve an advantageous average price, thus reducing the impact on the market price.
The recent development could signal a bullish sentiment among major investors and could potentially influence Ethereum's market trajectory.
Ethereum (ETH) price nears key support level
Ethereum's current trading pattern is of particular interest as it approaches a key support level, identified around $1,925.
Support levels are crucial in trading, signifying a price point where a downward trend could pause due to increased demand.
Despite recent price swings, with Ethereum oscillating between $1,940 and $2,018, it has notably stayed above the $2,000 mark at the time of reporting.
This persistence near the support level might indicate a robust market sentiment for Ethereum, presenting potential buying opportunities. However, it also raises a cautionary note since any break below this level could lead to further price declines.