Despite a general rise in the cryptocurrency market's capitalization, Ether (ETH) has experienced a 4% decline over the past week, raising doubts among traders about the possibility of a recovery to $3,000.
Current Situation with Ether Prices
The price of Ether has dropped by 4% over the last week, even as the overall cryptocurrency market capitalization increased by 1%. This raises questions about the likelihood of a rally to the $4,000 mark.
Leverage Metrics and Expected ETFs
Despite the price drop, interest in exchange-traded funds (ETFs) remains strong. In the last month, ETFs have accumulated $322 million in inflows. However, this may indicate that traders are anticipating changes that would make these funds more accessible. The U.S. SEC is currently reviewing requests for 'in-kind' operations.
Traders' Conclusions on the ETH Market
The lack of demand for leveraged ETH positions signals low confidence among traders. While other altcoins may soon receive their own ETFs, ETH shows a diminishing interest in leveraged trading. ETH options metrics currently indicate a neutral environment, but there are no signs of increased hedging demand, suggesting that the overall reduced appetite for ETH trading is not a clear bearish signal.
In conclusion, independent analysts point to a low level of confidence among traders in the short-term growth of Ether, despite increased interest in ETFs. This cultivates a cautious attitude towards the Ethereum market.
