In recent news, Ethereum experienced a surge in price, rising from $3.2k to $3.7k in just three days, marking a 16.2% increase. However, this rally was met with resistance at the $3.7k level, which had previously acted as a barrier. The influx of ETH to exchanges on 8 April signaled a shift in sentiment from bullish to more neutral over the past 24 hours, indicating a decline in investor optimism.
One interesting observation was the Coinbase Premium Index, which showed a decrease in prices on the USDT pair between Binance and Coinbase since 5 April. This decline suggested a lack of bullish enthusiasm from US investors, who can only trade on Coinbase and not Binance. This lack of conviction from US investors despite the price bounce to $3.7k reflected a subdued sentiment in the American market.
Further analysis of metrics like daily on-chain transaction volume and network growth revealed a lack of user adoption and organic demand for Ethereum. This raised questions about the short-term sentiment in both the spot and Futures ETH markets. Open Interest data also supported the idea of a bearish market sentiment, with a drop in Open Interest accompanying the price decline, indicating a negative outlook among traders.
