The world’s leading alt Ethereum recorded a massive rebound last week. Ether has seen its price soaring to surpass the $1,500 mark as its market capitalization inches towards the $200 billion zone.
The weekly price chart shows Ethereum surging over 40% as the asset leads the altcoin space upside. Nevertheless, on-chain stats by Santiment shows ETH’s overall sentiment remained negative as market players have little trust for the ongoing recoveries.
The analytic provider noted that ETH’s return beyond $1.5K after hovering beneath the area since 12 June seems to happen as participants boast little faith in the bounce back. Despite that, 30-day investors saw their ETH return increasing by more than 28%, hitting levels never seen since August last year.
Profit Taking Imminent?
The latest price surge might attract some profit taking, especially by near-term investors who recently bought the token around the $1K mark. Meanwhile, the portion of Ethereum supply in profit has gained 15% within the past week. Therefore, we cannot ignore profit-taking chances.
Data from Glassnode shows near 7.8% of ETH’s circulating supply has changed hands and transacted on-chain over the previous month. Nevertheless, overall ETH in profit has surged to 56%, after touching the 41% lows before the ongoing price rally.
Evaluating the Ether derivative market shows funding stayed lower on exchanges. Alex Kruger, a market analyst, says the future (quarterly) basis nears zero while flattish. Perp open interest is down in Bitfinex & Binance, up in OKEx, and flat in FTX since $1,200.
That shows that individuals can avoid executing new positions around current levels, considering Ethereum has already recorded a somewhat steady leg up.
Also, CoinShares suggests Ether recorded $2.6 million in net outflows last week, following three weeks of successive inflows, indicating some profit taking.
Nevertheless, broad market tendencies are crucial in determining ETH’s next move. Analysts should watch Bitcoin’s movements as they can impact actions within the altcoin market.
Bitcoin remained weak around the $22K level, hovering around $21,906.24 at this publication. Nevertheless, the bellwether crypto appears ready for retracement following the latest run-up. Such a narrative would support Ethereum’s slide.