Ethereum (ETH) has experienced a 21% decline over the past month, but signs of a potential reversal are emerging. Despite a 0.49% drop at press time, increased buying activity from Korean and U.S. retail investors, alongside surging derivatives market participation, suggests that ETH could regain momentum in the coming weeks.
Institutional Profit-Taking Slows Down
Market sentiment among institutional investors has seen a shift, as evidenced by Glassnode data. From February 10 to 15, the Ethereum spot ETF recorded net outflows, with approximately 14,000 ETH—worth $37.7 million at the current price of $2,695—being offloaded. The selling pressure largely stems from profit-taking after a bullish surge earlier in the month, which saw ETH reach levels last recorded in December.
However, if this trend stabilizes, institutional investors may re-enter the market with fresh buying activity in the new weekly cycle, further supporting Ethereum’s price.
Korean and U.S. Retail Investors Remain Bullish
While institutional investors took profits, retail investors in South Korea and the U.S. have continued accumulating ETH. The Korea Premium Index, which measures ETH’s buying and selling activity on Korean exchanges relative to other markets, has remained above zero since December 14, indicating sustained bullish sentiment. At press time, the index read 4.7, a significantly high value that reflects strong local demand.
In the U.S., the Coinbase Premium Index also signaled continued ETH accumulation. Standing at 0.02 at press time, this metric suggests moderate buying activity among American retail investors. If this trend persists, it could further fuel ETH’s recovery.
Derivatives Market Shows Strength
Ethereum’s bullish sentiment is also reflected in the derivatives market. The Taker Buy-Sell Ratio, which compares buying volume to selling volume, stood at 1.033—indicating that buyers are currently in control. Additionally, the Funding Rate turned positive at 0.0090, suggesting that traders are willing to pay a premium to maintain long positions.
With institutional profit-taking slowing, retail investors accumulating, and derivatives traders showing confidence, Ethereum may be poised for a rebound. If these bullish indicators persist, ETH could break its downtrend and rally in the near term.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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