Ethereum: After a Weak Sentiment, ETH Sees Some Change in Demand

Ethereum [ETH] Merger expectations remain high, especially now that it’s less than two weeks into D-day. The same cannot be said about the demand for ETH which was heavily influenced by macro factors especially in the first week of September. However, ETH demand has made a rapid recovery over the past three days as the tide has turned.

ETH, along with most major cryptocurrencies, appears to be heading lower earlier this week as sentiment wanes. Instead, the market presented a mid-week pivot point that led to further upside. ETH responded with a bullish push back above $1,700, albeit briefly at press time.

Evaluates the current demand for ETH

ETH values ​​resumed accumulating, supporting the upside. This is evidenced by the increase in the number of ETH addresses by over 1,000 ETH. The same headlines had earlier slipped earlier in the week, confirming outflows and supporting a small drop in prices.

Source: Glassnode

The change in investor sentiment seen in addresses with more than 1,000 ETH also reflects a change in open interest. Open interest rate index futures have posted gains since September 6, in line with the bullish midweek recovery. This confirms the shift in demand in favor of the bulls.

The ETH option volume buy/sell ratio is signaling a similar note after a pivotal point over the past two days. Orders are currently outstripping selling, which puts weight on the upside.

Source: Glassnode

ETH may not be in demand yet

ETH’s current performance is below expectations. Many investors expected a significant rally, perhaps above $2000 at this point. The level of demand for ETH in the market is currently falling below these expectations. Perhaps due to weak sentiment in line with unfavorable macroeconomic conditions.

Demand levels are reflected in the Ethereum buyer ratio, which currently stands at 0.51. The ratio evaluates the short volume against the long volume of the futures market and the current figure indicates that there is still a significant amount of short volume in the market.

Source: CryptoQuant

A buyer ratio greater than one confirms that the forward buying volumes are greater than the selling volumes. In this case, ETH has yet to be found, even as the merger approaches.

One possible consequence is that the consolidation countdown has not affected the surge in demand for ETH. The potential upside may be limited but there is still enough time for that to change, especially if market conditions permit.

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