- Reports have revealed that US investors are actively acquiring ETH despite its recent decline.
- Although conflicting signals from various measures cast uncertainty over the potential for a recovery, technical models indicate a recovery.
The broader cryptocurrency market has seen a significant shakeout over the past 24 hours, with Ethereum (ETH) down 8.41%, eroding its weekly performance to a loss of 4.76%.
However, a closer look suggested that this slowdown could be short-lived as US investors appeared poised to push ETH prices higher.
US Investors Support ETH Despite Market Volatility
Recent data from Crypto Quant’s Coinbase Premium Index for Ethereum, which measures the price differential between Ethereum on U.S.-based Coinbase Pro and global exchange Binance (BNB), signals increased interest from U.S. investors in cryptocurrency despite a recent market downturn.
A positive reading from this index indicated that Ethereum was commanding a higher price on Coinbase Pro compared to Binance, suggesting strong buying interest among US investors.
Source: Crypto Quant
At press time, the index was at a positive level of 0.03, reflecting continued investor confidence even amid market turbulence. If this buying activity persists, it is likely that the price of Ethereum will rise accordingly.
Further research by AMBCrypto revealed that while the potential for a rally is supported by US investors, sentiment within other sectors remains divided.
Mixed sentiment among retailers on ETH outlook
While some retailers remain enthusiastic about Ethereum, indicators provide mixed signals on its future price trajectory.
The increasing number of active and new addresses indicates bullish sentiment.
Specifically, the past few days have seen an 18.34% increase in new addresses and an 11.61% increase in active addresses, suggesting high engagement with Ethereum.
Source: IntoTheBlock
Over the past 24 hours, the number of new addresses reached 114.92k and the number of active addresses stood at 507.15k. This high level of activity indicates that the bullish sentiment in the market is steadily increasing.
However, Ethereum’s negative funding rate presented a mixed picture. It indicated that a majority of retail traders anticipated a price decline and were willing to pay a premium to maintain their short positions.
If this bearish outlook persists, it could hamper Ethereum’s rally potential, despite significant interest from US investors and positive growth in address statistics.
Support level will determine ETH’s next move
ETH recently broke out of a consolidation phase, a period typically marked by significant accumulation by whales in anticipation of a rally. This pullback can be attributed to stop hunting.
Stop-hunting involves large institutions deliberately manipulating the price of an asset to activate stop-loss orders, causing rapid price movements.
This strategy allows them to buy or sell large quantities at advantageous prices before the market regains stability.
Source: Trading View
In this case, this allowed institutional traders to accumulate more ETH at lower prices. These levels also coincide with a demand zone, potentially catalyzing a move higher.
Read Ethereum (ETH) Price Prediction 2024-2025
However, the sustainability of this rally depends on whether the support level at $2,552.99 turns into resistance, which would limit the upward price movement.
Moreover, a break above the resistance level at $2,723.83 would further confirm the bullish presence in the market.
