As Ethereum’s value against Bitcoin reaches its lowest point since 2021, investors from Korea and the U.S. are seizing the opportunity to accumulate more ETH. Derivative traders are also showing their confidence in the asset by taking long positions, signaling a bullish outlook for Ethereum’s future. Despite a slight drop in ETH’s price over the past week, market sentiment is shifting, with investors viewing the current price movement as a compelling buying opportunity.
The ETH/BTC pair, which measures the value of one ETH in terms of Bitcoin, has dropped to its lowest level in over a year, indicating that investors are receiving less Bitcoin for each ETH. This could be due to Bitcoin’s growing dominance in the market, causing some liquidity to flow out of ETH and into BTC. However, some investors see this as a chance to accumulate more ETH at a lower price, believing that the asset is currently undervalued. Metrics show an uptick in buying activity as investors take advantage of ETH’s perceived price dip.
Investors from both Korea and the U.S. are actively accumulating ETH, as indicated by the Korean Premium Index and Coinbase Premium Index, which track price differences between exchanges in these regions. These metrics show strong buying pressure, with both indexes currently above their respective thresholds. If this trend continues, it could drive ETH to new highs, especially considering the buying activity among these investor groups.
Derivative traders in the ETH market are also aligning with the buying trend, with data from CryptoQuant showing a positive outlook. The Funding Rate, which reflects the balance between long and short positions in Futures markets, favors long positions, indicating a bullish sentiment among traders. The Taker Buy/Sell Ratio, measuring buy orders versus sell orders among market takers, has also reached its highest level in November, indicating strong buying activity. If these trends persist, they could push ETH to higher levels and reinforce the overall bullish sentiment in the market.
Overall, despite the recent drop in the ETH/BTC pair, investors are seizing the opportunity to accumulate ETH at a lower price. The market sentiment is shifting towards a bullish outlook, with derivative traders and investors from Korea and the U.S. showing confidence in the asset’s future growth potential. If buying activity continues among these cohorts, ETH could see a significant boost in price, potentially reaching new highs in the near future.
