Ethereum Narrows Yearly Loss as Low-Leverage Rally Continues
Ethereum (ETH) has narrowed its year-to-date loss to about 7%, marking its smallest weekly decline since January. This recovery comes without the heavy derivatives leverage that typically accompanies previous rallies, indicating a different market setup. The second-largest cryptocurrency saw a steep drop of nearly 47% by early June but has since clawed back some of those losses. As of the latest data, Ethereum's price stands at $2,700, up 0.6% in the last 24 hours.
The current rally is notable for its low leverage, with futures open interest at around $14 billion, less than half of the $33 billion seen in September 2022. This suggests that the price uptick is driven more by spot market buyers rather than leveraged traders. Additionally, U.S. spot Ethereum ETFs experienced nearly $93 million in net outflows in October, reversing inflows seen in late September.
Traders are now watching the $2,800 level as a key technical indicator. Crypto analyst Ted Pillow noted that Ethereum closed its highest weekly candle in over eight months and emphasized the need for a weekly close above $2,800 with spot demand to confirm further upward momentum. Meanwhile, an Ethereum ICO participant sold 13,330 ETH worth around $37 million, highlighting ongoing activity from early investors.