For a long time, institutional investors have been cautious about Ethereum. The digital asset has been experiencing outflows until last week, when it saw inflows. But, it does not mean the cryptocurrency is experiencing a return of positive sentiment. CME data shows that institutional investors are still wary of the cryptocurrency and may even be bearish about it.
Ethereum falls into the Negative
CME Ether Futures have traded on a negative basis recently, meaning they trade below spot. These Ether Futures are now trading at their lowest levels since they were created.
In April, the CME’s Ether-denominated open rate of interest had reached a record high. However, the CME has been in decline since April. More drops were recorded during the weekend. It has also triggered a terrible streak in June.
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As June draws near, the Ether base has become decoupled and is trading below bitcoin spot. This was the same as the Ether basis that existed for three months. It was the first time the Ether Basis would fall so low.
Source: Arcane Research| Source: Arcane Research
Following this, asset managers are now predominantly bearish. Since mid-June, Ethereum has stood at $37million. The number is now at $32million, but it has fallen slightly since then. Ether is currently at -2.33%, while bitcoin stays at 0.63%.
ETH Struggles For $1,000
Not only institutional investors have been affected by the bearish sentiment toward Ethereum. Spot markets also feel the heat after sell-offs resumed. This has made it difficult for the digital asset to hold the $1,000 mark.
ETH fails to hold over $1,000| Source: ETHUSD on TradingView.com
Due to support building here, it is a significant level for Ethereum. It is an important technical level because if the price falls below it, resistance will quickly form around it. A dip below $1,000 would be extremely weak and the price could fall to $800 before any recovery.
Related Reading| Ethereum Plugs 11-Week Bleed, why $1,500 May Be On The Horizon
Ethereum trades now at a level below its 20-day moving mean, which means that there is no hope for any bullish rebound in the near term. Also, digital assets such ETH are still in danger due to the 3AC Liquidation.
Featured Image from Admiral Markets. Arcane Research charts and TradingView.com charts.
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