Ethereum Key Metrics Point to Persistent Bullish Outlook for ETH: CryptoQuant

Key metrics on Ethereum are painting a bullish outlook for the network’s native cryptocurrency, ether (ETH), despite its sluggish momentum over the past weeks. The asset has struggled to match bitcoin’s (BTC) momentum following the conclusion of the United States presidential election, but on-chain metrics indicate a bullish trend in the near term.

According to an analysis by the pseudonymous CryptoQuant official EgyHash, factors like Ethereum’s funding rates and Estimated Leverage Ratio suggest traders are optimistic about ether’s profit potential.

Ethereum Metrics Paint Bullish Outlook

The Ethereum Estimated Leverage ratio indicates investors’ tendency to execute high-leveraged derivatives trades. The metric is currently at its peak, signaling a sustained risk appetite among ETH traders.

Also, Ethereum funding rates are moderately positive, which indicates that long ETH positions are dominant but have not reached an extreme level. A moderately positive funding rate shows that there is still room for the price of ETH to increase without the risk of large-scale liquidations.

EgyHash highlighted the Korea Premium Index for Ethereum, which has turned positive and is currently trading at a substantial premium. This index measures the price gap between South Korean crypto trading platforms and exchanges in other regions. The current state signals growing interest in Ethereum among Korean market participants, indicating positive market sentiment.

ETH Investors Are Buying

Furthermore, the CryptoQuant analyst mentioned that Ethereum fund holdings have been increasing steadily. This can be seen in the United States spot Ethereum exchange-traded fund (ETF) market, which has recorded substantial inflows in seven out of the past nine trading days.

Whales and large ETH investors have also been aggressively accumulating the asset, reaching an all-time high of 57% in supply ownership despite the recent market correction. EgyHash said this indicates continued confidence among institutional and retail ETH investors.

“In aggregate, these factors point to a persistent bullish outlook for Ethereum, as market participants appear ready to maintain, and potentially increase, their exposure to the asset,” EgyHash added.

Meanwhile, data from CoinMarketCap showed ETH trading at #3,344 at the time of writing, down 14% weekly and slightly up in the past 24 hours.