Institutional investors have been bearish towards Ethereum for some time now. The digital asset has been rocked until it ends its 11-week streak with last week’s inflows. However, this does not mean that the positive sentiment has once again completely returned to the cryptocurrency. CME data shows that institutional investors are wary and even bearish towards the second largest cryptocurrency in the market.
Ethereum falls into the negative
Ether futures on CME have been trading on a negative basis lately, which basically means they are trading below spot. This has caused Ether futures to fall to the lowest level ever since its inception.
Ether-denominated open interest on the CME previously claimed a new all-time high in April. But since then, the decline has continued, with more falls recorded over the past weekend. Due to this the month of June has been bad.
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As the month draws to a close, the three-month Ether base has now diverged from Bitcoin and is trading below the spot recorded on June 23rd. Hence marked the first time that the ether base will ever be so low.
ETH futures on CME in decline | Source: Arcane Research
Since then the asset managers are now mainly bearish. It is recorded that they have been making a net shortfall on Ethereum since mid-June when it was $37 million. That number has since fallen, but only slightly to rest on the $32 million that was recorded last week. Ether futures base is now sitting at -2.33% while Bitcoin remains at 0.63%.
ETH Struggles to Hold $1,000
The bearish sentiment towards Ethereum is not limited to institutional investors alone. With the resumption of selling, the spot markets are also feeling the heat. In light of this, the digital asset has struggled to maintain the $1,000 level.
ETH struggles to hold above $1,000 | Source: ETHUSD on TradingView.com
This level is important for Ethereum due to the fact that support is rising here. However, this is a very important technical level considering that if the price drops below this point, resistance will quickly form around it. Any support below $1,000 is incredibly weak, so a fall from here could take the price to $800 before any recovery.
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Ethereum is now trading strongly below its 20-day moving average, which has erased all hopes of a bullish recovery in the near term. Additionally, as the 3AC liquidation comes into focus, the implications for digital assets like ETH remain very negative.
Featured image from Admiral Markets, charts from Arcane Research and TradingView.com
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