ETHFI is experiencing strong bullish momentum. Since holding $0.30 support earlier this week, the altcoin has posted consecutive higher highs, reaching a local high of $0.38.
At the time of writing, ether.fi (ETHFI) was trading at $0.37, up 11.24% on the daily charts. At the same time, trading volume increased 72% to $58 million, while market capitalization climbed 12% to $346 million.
With the latest rally, the altcoin reclaimed the 20- and 50-day exponential moving averages (EMA) at $0.34 and $0.36, indicating strengthening bullish momentum.
Why is THIS demand improving?
At the end of June, Ether.fi sellers showed signs of exhaustion after dominating the market during the last week of the month. This change allowed buyers to successfully defend the $0.30 support.
Since then, buyers have outpaced sellers. According to CoinGlass data, Spot Netflow has remained negative for four consecutive days.
At press time, Spot Netflow stood at -$188,000, an improvement from -$492,000 the day before.
A prolonged period of negative Spot Netflow suggests that demand remained strong across the market. Historically, stronger spot demand has supported better price performance.
In fact, the momentum has grown even stronger over the past day.
The Directional Movement Index (DMI) formed a bullish crossover, with the positive index climbing to 26.
Meanwhile, the negative index fell to 15, while the average directional index (ADX) increased to 19. This pattern indicates strengthening bullish momentum as selling pressure weakens.
If buyers remain in control, ETHFI could reclaim the 100-day exponential moving average (EMA) near $0.40.
Why do derivatives traders remain cautious?
While the spot market showed strong demand, derivatives traders continued to reduce their exposure.
For starters, average futures order size data from CryptoQuant showed that whales remained active throughout the recent downturn.
Large orders suggest whales continue to participate in the futures market. However, selling pressure remained high.
Over the past week, $59 million in futures positions have been closed, while $338 million has been withdrawn over the past month.
The same trend appeared in Perpetual Futures.
Perpetual sales volume soared to $88 million over the past week. The dominance of sellers in derivatives suggests traders are not convinced of a sustainable recovery. Instead, many appeared to reduce their exposure to the force.
This continued caution posed a risk to the sustainability of the recovery. If the selling pressure persists, Ether.fi could revisit the $0.30 support.
Final summary
- ETHFI gained 11% as buyers defended $0.30 and reclaimed key near-term EMAs.
- Negative Spot Netflow reported sustained buyer demand despite recent market volatility.
