Posted: November 22, 2024

• As ETH/BTC reaches its lowest point since 2021, investors, particularly from Korea and the U.S., begin to accumulate.
• Derivative traders are also taking positions, placing long bets on ETH.

Ethereum [ETH] has remained above the $3,000 mark for the past month, with a 19.84% gain. However, over the past week, ETH has seen a 2.15% drop.

Despite this, market sentiment appears to be shifting, as reflected by a modest 0.19% uptick in recent trading.

AMBCrypto examines why investors are viewing this price movement as a compelling buying opportunity.

What the ETH/BTC pair signals for Ethereum

The ETH/BTC pair, which reflects the value of one ETH in terms of BTC, recently dropped to its lowest level since 2021, dipping below 0.03221, as reported by Degen News.

This suggests that market participants are receiving less BTC for each ETH, as Bitcoin’s price has surged to a lifetime high, now trading above $97,000.

Two primary interpretations can be drawn from this movement: First, Bitcoin’s growing dominance may lead to liquidity flowing out of ETH and into BTC as investor confidence shifts.

Alternatively, some investors might view this as an opportunity to accumulate more ETH, believing it is currently undervalued.

Analysis by AMBCrypto indicated that the latter scenario was more likely, with metrics showing an uptick in buying activity as investors take advantage of ETH’s perceived price dip.

Investors continue to accumulate

Despite the recent drop in the ETH/BTC pair, AMBCrypto found that investors from both Korea and the U.S. were actively accumulating ETH.

The Korean Premium Index and Coinbase Premium Index, which track the price differences between Korean exchanges, Coinbase, and other platforms, show that both metrics are currently above 1 and 0, respectively.

This indicates strong buying pressure from these investor groups.

As of writing, the Korean Premium Index is at 1.37, and the Coinbase Premium Index is at 0.0073, suggesting that these investors are increasing their ETH holdings. If this trend continues, it could drive the token to new highs.

Should the buying activity persist among these cohorts, ETH’s modest gains over the past 24 hours could see a significant boost.

Derivative traders align with buying trend

Recent data by CryptoQuant on derivative traders in the ETH market revealed buying trends, particularly with the Funding Rate and Taker Buy/Sell Ratio.

The Funding Rate, which reflects the balance between long and short positions in Futures markets, favored long positions at press time.

This suggested a bullish outlook, with traders expecting ETH to rise from its current price level.

In addition, the Taker Buy/Sell Ratio—measuring the volume of buy orders versus sell orders among market takers—has surpassed 1 and reached its highest level in November, exceeding the previous peak of 1.0486.

Read Ethereum’s [ETH] Price Prediction 2024–2025

This indicated strong buying activity and a market skewed toward upward momentum.

If these trends persist, they could drive ETH to higher levels, further reinforcing the bullish sentiment in the market.