Ethereum last traded above $4,000 on October 14. It has seen an increase of 2.2% and is currently trading at $3,940. Despite this upward move, investor sentiment remains split. As ETH approaches the $4,000 threshold, questions arise regarding its forthcoming trajectory. Reports indicates the implications of this shift in sentiment for the future of Ethereum. Institutional investors are starting to shift back toward the bearish sentiment that characterized the beginning of the week. The U.S. spot ETH Exchange Traded Funds experienced a significant outflow of $145 million on Monday, indicating a resurgence of bearish sentiment. On Tuesday, the atmosphere took a turn with a $141 million buyback, resulting in a neutral market condition.
The equilibrium was short-lived. By Wednesday and Thursday, the mood shifted dramatically to the negative side once more. On Wednesday, investors offloaded $18.77 million in ETH, but the significant change occurred on October 23rd, when outflows skyrocketed 6.7 times to reach $127.51 million. A significant cut in exposure usually indicates a distinctly bearish perspective. As institutional investors withdraw capital from the market, it seems that savvy investors are countering this trend with strategic opposing bets. Smart traders, recognized for their high-conviction and profitable strategies, are adopting a contrary position regarding the future trajectory of Ethereum.
Recent reports indicate that a trader boasting a 100% win rate has expanded their long position on ETH, expecting a bullish breakout. At press time, the total long position on Ethereum has surged to $132.24 million over the last 24 hours. According to data, 67% of open ETH contracts are set for an upward movement. This trend underscores the increasing confidence of savvy traders, contributing to the asset’s bullish momentum as they expect more significant price movement.
The chart pattern remains unconfirmed for a definitive breakout, and ETH has experienced some short-lived declines. ETH displays a diagonal resistance line and a demand zone positioned near the lower end of the chart, suggesting a potential bullish trend. However, the same diagonal resistance has led to price declines on five separate occasions. As ETH navigates this critical level, the pattern presents a possible risk to its short-term rally. The Moving Average Convergence Divergence indicator is showing an upward trend, as the MACD line nears a crossover above the signal line. If this crossover takes place as ETH surpasses the descending resistance, it would indicate a confirmation for the bulls. Otherwise, the asset might encounter another pullback.