Ethereum [ETH], the largest altcoin continues to see alarming signs with respect to its price on a weekly basis. ETH remained in a bearish zone below the $1,280 and $1,250 resistance levels.
Now, ETH started a fresh decline (7%) and traded below the key $1,200 support area. Thus, for the past 11 weeks, red week after red week has been closing.
Not only this, some interest action was also seen in the futures market.
Bear attack on both ends
It is quite clear that Ethereum has suffered significantly in the spot market. ETH has been one of the most affected coins. And, it is performing poorly as compared to other cryptocurrencies at the moment.
Similarly, sentiment surrounding the largest altcoins also took a beating. The volume of positive comments towards ETH dropped to dangerously low levels – a level not seen in four years.
Sentiment, an analytical platform, said in a tweet dated June 29,
I #ethereum is back under $1,200 #crypto And #equity Withdrawn on Tuesday. #2 There is very little positive commentary these days for market cap assets. We haven’t seen the ratio of positive versus negative comments so low since May 2018. https://t.co/nAg5qyzLHf pic.twitter.com/RA7RRdmgun
— sentiment (@santimentfeed) June 28, 2022
Furthermore, Chicago Mercantile Exchange (CME) ETH futures contracts are trading at a discount to the spot price of ETH.
Here, CME front-month Ether futures have traded on a negative basis (below the spot) since mid-May. The said divergence could indicate future losses for Ethereum. Meanwhile, ether-valued open interest on the CME climbed to the highest level since early April (blue uptick in the chart below).
The analyst at Arcane Research revealed that asset managers are drastically reducing, the asset manager’s net exposure to — $37 million.
Meanwhile, the ether-valued open interest on the CME climbed to the highest level since early April.
According to the most recent COT, asset managers are underreporting, with the asset manager having a net exposure of –$37m.
Chart Courtesy: @section__ pic.twitter.com/uga3bHYgc2
— Vettel Lunde (@VetleLunde) 23 June 2022
bear it all
Ethereum is currently in the process of migrating from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus algorithm. However, the ETH Core developers announced the delay of a component that will lead to this upgrade.
Nevertheless, ETH holders have backed the network. For example, despite the above situation, Glassnode noted that the number of non-zero addresses reached an ATH of 83,076,411. Holders can be expected to increase as ETH draws closer to the much-anticipated merger.