Key Ethereum metrics point to persistent bullish outlook for ETH: CryptoQuant

Key Ethereum metrics are painting a bullish outlook for the network’s native cryptocurrency, ether (ETH), despite its sluggish momentum in recent weeks. The asset has struggled to match bitcoin’s (BTC) momentum following the conclusion of the US presidential election, but the chain’s metrics indicate a near-term bullish trend.

According to an analysis by CryptoQuant pseudonymous official EgyHash, factors such as Ethereum’s funding rates and estimated leverage ratio suggest that traders are optimistic about Ethereum’s profit potential.

Ethereum Metrics Paint Bullish Outlook

Ethereum’s estimated leverage ratio indicates the tendency of investors to execute highly leveraged derivative trades. The metric is currently at its peak, indicating sustained risk appetite among ETH traders.

Also, Ethereum funding rates are moderately positive, indicating that long ETH positions are dominant, but have not reached an extreme level. A moderately positive funding rate shows that there is still room for the price of ETH to rise without the risk of large-scale liquidations.

EgyHash highlighted Ethereum’s Korea Premium Index, which has turned positive and is currently trading at a substantial premium. This index measures the price difference between South Korean crypto trading platforms and exchanges in other regions. The current state indicates a growing interest in Ethereum among Korean market participants, indicating positive market sentiment.

ETH investors are buying

Additionally, the CryptoQuant analyst mentioned that Ethereum fund holdings have been steadily increasing. This can be seen in the local U.S. Ethereum exchange-traded fund (ETF) market, which has seen substantial inflows in seven of the past nine trading days.

Whales and large ETH investors have also aggressively accumulated the asset, reaching an all-time high of 57% in supply ownership despite the recent market correction. EgyHash said this indicates continued confidence among institutional and retail ETH investors.

“Together, these factors point to a persistent bullish outlook for Ethereum, as market participants appear poised to maintain, and potentially increase, their exposure to the asset,” EgyHash added.

Meanwhile, data from CoinMarketCap showed ETH trading at 3,344 at the time of writing, up 14% on the week and slightly higher in the past 24 hours.

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