Ethereum Narrows Yearly Loss as Rally Gains Momentum

Ethereum's year-to-date loss has narrowed to about 7%, marking its smallest weekly decline since January. This recovery follows a significant drop of nearly 47% in early June. The current rally is notable for its lack of heavy derivatives leverage, contrasting with previous peaks. As of the latest data, Ethereum's price stands at $2,700, up 0.6% in the last 24 hours.

Traders are closely watching the $2,800 level, as a weekly close above this point could signal further upward momentum. Crypto analyst Ted Pillow highlighted that Ethereum closed its highest weekly candle in over eight months, emphasizing the importance of spot demand in sustaining the rally.

Futures open interest remains well below last year's peak, currently around $14 billion, indicating fewer leveraged bets. This suggests that the recent price uptick is driven more by spot market buyers than by leveraged traders. Additionally, U.S. spot Ethereum ETFs saw nearly $93 million in net outflows in October, reversing a period of inflows in late September.

An Ethereum ICO participant recently sold 13,330 ETH worth around $37 million after holding for six months. The wallet originally bought 170,000 ETH through the ICO at approximately $0.31 each, which would now be worth around $461 million.