Ethereum’s price has risen 5% over the past week, attracting retail interest while institutions continue to withdraw investments from ETH-backed funds. The Coinbase Premium Index signals increased US retail buying activity; however, ongoing outflows from ETH ETFs reflect institutional scepticism. While positive buying pressures could push prices up to $2,114, a shift to bearish sentiment could drop prices to $1,395.
Ethereum, a leading altcoin, has seen a 5% price increase in the past week, reflecting a broader market recovery. This growth has sparked renewed interest among retail investors in the US, as evidenced by on-chain data indicating rising demand for ETH.
Despite the surge in retail investment, institutional investors remain hesitant. Their continued withdrawal of funds from ETH-backed investment vehicles suggests a lack of confidence in a forthcoming price resurgence.
The uptick in retail interest is particularly notable in the ETH Coinbase Premium, which has returned above zero, currently at 0.016. This index gauges the price difference of ETH on Coinbase relative to Binance. A positive value indicates significant purchasing activity by US investors on Coinbase, while drops into negative values suggest decreased trading on that platform.
A positive Coinbase Premium Index reflects bullish market sentiment, indicating that investors are willing to pay more for purchasing Ethereum on Coinbase. This trend of increased buying may enhance the altcoin’s value in the short term but contrasts with the cautious attitude of institutional investors, who have been withdrawing from US-based spot ETH exchange-traded funds (ETFs) for seven consecutive days.
While retail traders show growing optimism for Ethereum’s potential gains, institutional investors remain wary, likely influenced by macroeconomic uncertainties. Despite positive capital inflows, indicated by a Balance of Power (BoP) of 0.57, which suggests greater buying pressure than selling, a bearish trend could reverse these gains.
If retail demand diminishes, the altcoin might decline from its current price, potentially down to $1,395, despite its target of $2,114 if positive trends persist. The market dynamic indicates a significant divide between retail enthusiasm and institutional caution, shaping Ethereum’s price trajectory in the near future.
