Ethereum (ETH) has seen a recent surge in bullish activity in the market, with an increase in purchasing activity on the crypto exchange Bybit. This positive movement comes after a period of decline, with ETH rallying 3.79% in the past 24 hours. Based on Bybit’s recent purchase of $297 million worth of ETH, along with increased activity in the derivatives market, the asset could potentially recover from its weekly loss of 17.84%.
Bybit’s purchase of ETH is seen as a bullish move, with the exchange buying a total of 108,648 ETH in two transactions. This buying activity follows the largest crypto hack in history, where over 490,000 ETH was stolen from exchanges. Despite the hack, the market is showing signs of stabilization, with key metrics suggesting a rebalancing rather than a bearish trend.
The spot market activity, including a decline in available ETH on exchanges and an increase in exchange net inflows, could indicate a shift towards a bullish sentiment. Additionally, the derivatives market is showing positive signs, with Funding Rates and Open Interest turning bullish. A positive Funding Rate suggests confidence in long positions, while the surge in Open Interest indicates a significant increase in buying volume in the derivatives market.
Overall, ETH remains in a bullish phase despite recent challenges, and analyzing the derivatives market could provide further clarity on its future movement. By paying attention to key metrics and market sentiment, traders can make informed decisions on whether to buy or sell ETH. The recent surge in purchasing activity on Bybit, alongside positive movements in the derivatives market, are encouraging signs for the ETH market moving forward.
