After witnessing a 21% decline in the past month, Ethereum (ETH) might see a turnaround with the emergence of optimistic sentiment.
Despite currently being down by 0.49% at present, the buying interest from investors in South Korea and the United States, coupled with a surge in trading volume in the derivatives market, could fuel a recovery for ETH in the coming days.
Profit-Taking by Institutional Investors
Recent data from Glassnode indicates a shift in market sentiment among traditional institutional ETH holders.
Between the 10th and 15th of February, there was a negative turn in the Ethereum spot ETF, leading to the sale of around 14,000 ETH, valued at approximately $37.7 million at the current price of $2,695.
The selling activity is likely linked to profit-taking by institutional investors following a bullish trading period leading up to February 5th, reminiscent of levels seen in December.
If this trend continues, we may see a resurgence in ETH buying among traditional investors with the start of a new trading week.
Involvement of Korean and U.S. Retail Investors
While institutional investors were selling off ETH, retail investors in South Korea and the United States maintained their interest, evident from their respective market indexes.
South Korean retail investors, in particular, have shown the most positive stance towards ETH, with the Korea Premium Index staying consistently above zero since mid-December, currently standing at 4.7.
The Korea Premium Index reflects the buying and selling activity on Korean exchanges compared to other global platforms, with a value above zero indicating bullish sentiment.
Likewise, U.S. retail investors have been steadily acquiring ETH, albeit in smaller quantities, reflected in the Coinbase Premium Index currently at 0.02.
Continued buying interest from both these investor groups could further boost the positive sentiment surrounding ETH, potentially propelling prices upwards.
Derivatives Traders Engage in Buying
Derivatives traders have been actively involved in buying, as indicated by the Taker Buy-Sell Ratio standing at 1.033, pointing towards a higher volume of buyers.
A ratio above 1 suggests a surge in buying pressure among derivatives traders in the market.
This trend is in line with the positive turn in the Funding Rate, settling at 0.0090, indicating a preference for buying among traders willing to pay a premium to maintain market balance in perpetual and swap exchanges.