JThe global crypto market has been under tremendous pressure to reverse the bull run. Eventually, all major cryptocurrencies enter the recovery phase, including Bitcoin and Ethereum, among others.
The leading altcoin, Ethereum, even surpassed its crucial resistance level of $1,500, and its market capitalization is also very close to reaching $200 billion.
When the weekly chart is factored in, Ethereum has surged above 40% leading the altcoin rally.
On the other hand, according to statistics published by on-chain data provider, Santiment, overall market sentiment towards Ethereum is still negative, as the trader’s belief in the currency does not is comparatively not so strong.
Ethereum on profit booking?
Meanwhile, traders who bought Ethereum while it was trading for around $1,000 made a profit. But, over the past seven days, the currency’s profit bid has rebounded 15%. Hence, this suggests that there is a profit reservation.
Additionally, Glassnode defines that nearly 7.8% of $ETH in circulation moved into on-chain transactions within a month. The data also indicates that prior to the current price rally, the entire supply of $ETH that is in profitability was at a low of 41%. It is now at 56%.
Then, when Ethereum derivatives are factored in, the funding rate is still rock bottom on almost every exchange. Speaking of the same, market analyst Alex Kruger States that the quarterly futures contract is almost zero and constant. Since $1200 perp open interest is negative on binance binance [email protected] Centralized exchange Followers: 0 See profile and Bitfinex, even on ftx trading ftx trading Centralized exchange Followers: 0 See profile and higher on OKEX.
This data indicates that traders should not afford to take any new positions during the current rally as the price of ETH is rising.