What To Know:
- Ethereum rebounded 3.6% to $3,390.15, lifted by global market relief after China paused tariffs on select US imports.
- Analysts warn the recovery lacks strength, with futures open interest down 19% and ETF outflows signaling cautious sentiment.
- Institutional buyers like BitMine continue to accumulate ETH, showing long-term confidence despite short-term market uncertainty.
Ethereum (ETH) recorded a fair rebound on Wednesday, climbing 3.6% over the past 24 hours to trade at $3,390.15. The uptick came in as a broader market relief after China suspended reciprocal tariffs on selected US agricultural imports, which seems to provide a temporary lift to risk assets across global markets.
Ethereum Rebounds But Doubts Continue
The surge offered a brief rest to Ethereum investors after two days of steady losses. Still, many analysts say the recovery lacks conviction. According to crypto analyst and investor Ted Pillows, the move appears more technical than fundamental. “$ETH is showing some bounce back after this week’s crash. The pump isn’t looking strong, as the rally is primarily driven by shorts being closed. Until Ethereum reclaims the $3,600–$3,700 zone with strong inflows, the chances are it’ll go lower,” Pillows wrote on X (formerly Twitter).
Market data supports that cautious view. CoinGlass reported that Ethereum’s futures open interest (OI) has dropped to around $38 billion, down 19% from $47 billion last weekend and nearly half of its $70 billion high in August. The decline in open interest demonstrates a pullback in leveraged positions. This shows the current risk-off sentiment among traders. Many investors have shifted to the other options, waiting for clearer signs of stability before re-entering the market.
Ethereum’s recent rebound follows a slide from its late-August peak of $4,956. The downturn has been ignited by profit-taking, persistent macroeconomic uncertainty, and limited new catalysts to inspire buying momentum. Glassnode data shows Ethereum’s Spent Output Profit Ratio (SOPR), a metric used to measure whether investors are selling at a profit or loss, has fallen to 0.97 from 1.08 in early October. A reading below 1.0 suggests investors are selling their holdings at a loss, often due to fear or panic.
Some analysts see this as a potential case for a rebound once weaker hands exit the market. A sustained SOPR below 1.0 has ususally showed an approaching bottom, as selling pressure begins to ease and accumulation stage starts. Still, that outcome depends on broader market stance and macroeconomic conditions stabilizing in the coming weeks.
ETF flows, another critical indicator of institutional participation, remain under pressure. Spot Ethereum exchange-traded funds (ETFs) recorded a net outflow of $119 million this week, which marks a six consecutive days of withdrawals. On the other hand, US spot Solana ETFs logged seven straight days of inflows, totaling $9.7 million.
Institutional exposure, too, has played a significant role in shaping the market sentiments. BitMine Immersion Technologies (BMNR) recently bought another 82,353 ETH (worth $294 million) in the past week. This brings its total holdings to 3,395,422 ETH. That represents roughly 2.8% of Ethereum’s circulating supply, which is acquired at an average price of $3,909 per token.
Tom Lee, Chairman of BitMine, remains confident about Ethereum’s longer-term trajectory. He reiterated his outlook for both Bitcoin and Ethereum to end the year higher, instead of the recent market volatility. “We see temporary weakness as opportunity,” he said in a statement accompanying the company’s acquisition report.
The growing inclination towards $ETH from treasury firms like BitMine, SharpLink Gaming, Bit Digital, BTCS shows a solid belief in Ethereum’s long-term value proposition. This holds particularly true as network activity in staking, decentralized finance (DeFi), and tokenized assets continues to expand for Ethereum. But, near-term sentiment remains cautious as traders are considering the possibility of further corrections before any sustainable uptrend happens.
Technical indicators hint Ethereum must reclaim the $3,600 to $3,700 range to confirm strength. Failure to do so could leave it vulnerable to a retest of the $3,100–$3,200 zone, analysts say.
Also Read: Tomasz Stańczak Says Ethereum Will Be Cornerstone of Future Finance
