Ethereum Buyers Returning? On-Chain Metrics Suggest Correction May Be Nearing Its EndEthereum's 13% drop below the key $3,000 level since early August may be nearing its end, with two on-chain metrics indicating that the pullback could be ending soon. Crypto analysts are optimistic about the rise in Ethereum holdings and the "positive" receiver-to-sender ratio, suggesting that the long correction period may be coming to an end
Ethereum Buyers Returning? On-Chain Metrics Suggest Correction May Be Nearing Its End
Ethereum's 13% drop below the key $3,000 level since early August may be nearing its end, with two on-chain metrics indicating that the pullback could be ending soon. Crypto analysts are optimistic about the rise in Ethereum holdings and the "positive" receiver-to-sender ratio, suggesting that the long correction period may be coming to an end.
"Ethereum buyers are starting to regain strength," wrote CryptoQuant author Burak Kesmeci in a report on August 19. He noted that the receiver-to-sender ratio has "turned positive again," which calculates the ratio of Ethereum buyers to sellers across all major crypto exchanges. While the longer 24-hour cycle shows a slight advantage for Ethereum sellers, according to CoinGlass, the recent 12-hour cycle leading up to publication has turned positive, with 50.37% of positions being long.
Meanwhile, Ethereum's total open interest (OI) in options contracts reached $10.69 billion on August 19, up roughly 10% from the day before (August 18). Kesmeci believes that "for prices to rise considerably, leveraged players will need to return to the scene." Typically, as asset prices surge, futures traders are more confident about building positions. On March 12, when ETH reached a year-to-date high of $4,066, OI was $13.67 billion. When it retested those levels again in June, OI soared to over $15 billion. "This indicates that a correction might be coming, and indeed it happened," Kesmeci added.
Despite the highly anticipated launch of the first US Ethereum exchange-traded fund (ETF) on July 23, the historic debut did not boost ETH prices. These ETFs might be a contributing factor to the decline in Ethereum's price, as US ETHETFs have seen a cumulative net outflow of $434 million since their launch, generating significant additional selling pressure.
As of press time, Ethereum is trading at $2,679, down 23.57% since July 23. ETH has risen 0.78% over the past seven days. Source: CoinMarketCap.
The positive shift in on-chain metrics and the return of buyer strength are generating optimism for Ethereum's future trajectory. Despite the ETF launch failing to boost prices, analysts believe Ethereum's correction period may be nearing its end, with a potential price rebound on the horizon.
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