Ethereum might finally be headed for a major price breakout as recent on-chain metrics signal rising investor demands despite a recent crypto market downturn.
While the negative market conditions have sparked rising selling pressure across the broad crypto market and were well reflected on Ethereum’s performance over the period, momentum appears to be shifting.
On Thursday Feb. 12, popular crypto analyst Ali Martinez, showcased data from Santiment, revealing that a massive 330,000 Ethereum have been scooped in major buy attempts in the past week.
While Ethereum has been trading around the $2,000 mark during the period, this massive accumulation saw over $660,000,000 worth of ETH tokens withdrawn from exchanges within seven days.
Considering the bearish market sentiment during the period, the accumulation has sparked discussion across the crypto market as it signals renewed interest among investors despite the prolonged volatility.
Ethereum set for recovery?
While the massive Ethereum withdrawal from exchanges signals growing demand and rising buying activities, Ethereum appears to be responding to this metric positively.
After multiple days of trading in deep red territory, data from CoinMarketCap shows that the asset is finally flashing signs of a potential price recovery as it has surged decently by 1.33% over the last 24 hours.
While the price increase is moving at a slow pace, investors are optimistic for a more rapid price increase in the near future if momentum returns to the market. Nonetheless, Ethereum is trading $1,966 as of writing time.
Ethereum open interest declines
Following the mild resurgence seen in the price of Ethereum over the last 24 hours, its futures activities have also shown decent strength. Data from CoinGlass shows that the Ethereum open interest across all exchanges has surged by 2.76% during the same period.
The positive open interest accompanied with a slow price surge suggests that the asset is gradually regaining momentum despite broader market downside pressure.
Nonetheless, CME futures traders appear to be lagging in contrast to performances pulled off by other exchanges as the Ethereum open interest on CME has slumped by 2.02%.
Vladislav Sopov
Dan Burgin