The price of Ethereum is growing steadily for the last week, increasing by almost 10%. Institutional investors continue to invest in the leading altcoin ..
ETH growth occurs against the background of general optimism on the crypto and increasing connection with bitcoin (BTC), which itself updates the ATN. Ethereum can be ready for a significant breakthrough, but obstacles are still on its path.
ETH/BTC correlation is growing
Ethereum correlation with bitcoin has grown sharply from the end of June. The ETH/BTC coefficient shows how much ETH prices follow the BTC movements. The meaning close to 1 indicates that both assets move in one direction, and the meaning close to -1 -that they go in opposite directions. Now this metric is 0.02.
BTC updates historical maximums, and the price of Ethereum can follow it and grow. The historically high correlation in the bull phases preceded the joint rally of both assets.
Institutionals are actively buying Ethereum
Ethereum institutional investors strengthen positions. Probably, this group is used by the growing correction of ETH/BTC and is prepared for the probable breakthrough above $ 3,000. According to Glassnode, an open interest in futures on ETH on the Chicago Modern Exchange (CME), measured by a sliding average in 7 days, reached a record $ 3.34 billion.
Open interest reflects the total number of currently unexpressed contracts for various derivatives, such as options and futures. His growth suggests that more market participants are in new positions. The decline, on the contrary, indicates a decrease in market activity.
In addition, sustainable weekly tributaries in spotes ETF on Ethereum emphasize the strengthening of confidence in altcoin. According to SOSOVALUE, ETH-ETF from May 9, fixed permanent weekly tributaries. Only last week they received more than $ 219 million, despite the side dynamics of the coin. This confirms the growing trust in the long -term value of ETH. Investors are preparing for a possible breakthrough above $ 3,000. However, there is one “but”.
Bulls stuck below $ 3,000, as retail traders leave the game
While key holders seek to raise the price above $ 3,000, the short-term dynamics of ETH suffers due to “weak hands.” These retail traders, who kept a coin for less than 30 days, are sold against the backdrop of a recent price strengthening. According to Intoleblock, the balance of this group decreased by 16% from July 4. This slows down the increase in price, despite strong institutional support.
Retail traders affect short -term price fluctuations through frequent, emotionally determined transactions. Unlike institutional investors who keep assets during periods of price fluctuations, retail participants are more affected by news and moods. When they begin to sell, the pressure on the decline increases, slowing down the rally or causing correction.
The institutional interest in Ethereum indicates a long -term trust. However, retail traders are necessary for a breakthrough above $ 3,000 in the short term. If they remain aloof and the demand will fall, the coin can lose some of the recent achievements and fall below $ 2,745. Meanwhile, the influx of new demand can push the price above $ 2,851, in the direction of $ 3,067.
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Source: Cryptocurrency
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