Ethereum Drops 55% From Peak With Buying Interest Still Muted
Summary
- Ethereum (ETH) has fallen 55%% from its peak, but buying interest remains limited and has not been enough to absorb selling pressure, according to the analysis.
- On-chain analytics firm EasyOnChain said a widening disconnect between the derivatives market and spot demand suggests ETH has entered a medium- to long-term bear market.
- Spot ETF flows, a negative Coinbase Premium, and a decline in institutional participation were flagged as warning signs, while a recovery in spot demand for ETH and changes in institutional investment flows could influence the direction of the altcoin market.
Forecast Trend Report by Period
Ethereum has fallen 55% from its peak, but buying interest in the market remains limited, according to an analysis that also pointed to concerns about slowing institutional demand.
CryptoPotato reported on May 21 that on-chain analytics firm EasyOnChain sees ETH as still unable to absorb selling pressure despite the price decline.
The firm said ETH's current challenge is not just the decline in price, but a widening disconnect between the derivatives market and spot demand.
It also said ETH appears to have already entered a medium- to long-term bear market.
As one warning sign, EasyOnChain pointed to spot ETF flow data that suggests institutional participation is declining.
It added that the Coinbase Premium remained negative throughout May, indicating that US institutional investors are pulling back from the market.
The broader crypto market has recently seen altcoins continue to lag Bitcoin, while institutional capital remains concentrated in BTC.
Markets are now watching whether spot demand for ETH recovers and whether institutional investment flows shift, as both could influence the direction of the altcoin market going forward.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
