- Ethereum traders turned bearish as demand for puts grew.
- The price of ETH did not experience much volatility, retail investors continued to accumulate ETH.
Ethereum [ETH] witnessed a massive surge in interest as bullish sentiment around the crypto sector grew, led by the adoption of the Bitcoin ETF. However, as time has passed, it appears that the bullish tides regarding Ethereum have changed.
Interest in wells is increasing
According to QCP data, ETH risk reversals to negative indicate increased demand for put options to protect against potential losses from speculative long positions.
Altcoin speculators may also acquire ETH puts to hedge against downward movements in altcoin prices. These trends raise concerns about a possible market correction, especially given the significant impact on the market.
However, the market is expected to react strongly to any downside moves.
The shift to bearish sentiment could be due to upcoming events that could cause volatility in the price of ETH. One of these would be the upcoming Dencun upgrade, which will go live at 13:55 UTC and could have an impact on price and sentiment.
The concern surrounding the upgrade is expected as not all upgrades have had a bullish impact on the price of ETH. For example, the Merge update, which was intended to shift Ethereum from a Proof of Work cryptocurrency to a Proof of Stake network, resulted in a massive correction.
These fears, coupled with the uncertainty surrounding the approval of Ethereum ETF applications, could cause FUD in the market.
How is ETH doing?
At the time of writing, ETH was trading at $4046 and had been steadily rising towards this price level. Despite some minor corrections, the overall trend remained bullish.
However, the OBV (On Balance Volume) for ETH has fallen significantly in recent days. This suggests that selling pressure was greater than buying pressure, possibly indicating a weakening trend or an impending price drop.
Source: trading view
Retail continues to pile up
Network growth for ETH had also grown, indicating that new addresses continued to show interest in ETH. Coupled with this, the total number of holders accumulating ETH had also skyrocketed.
Source: Santiment
Read Ethereum’s [ETH] Price forecast 2024-25
However, when we looked at the behavior of addresses as a whole, it was noted that it was retail investors who showed more interest in ETH.
Whales, on the other hand, did not show the same interest and did not accumulate at the same rate.
Source: Santiment