1inch Team Mutual Fund is accumulating Ethereum, crypto analytics platform Lookonchain reported. Meanwhile, on-chain indicators are not promising for the altcoin. Crypto analyst Marcel Pechman reads the future of ETH through these indicators.
1inch Team Investment Fund collects altcoin Ethereum
cryptokoin.comAs you follow from, the cryptocurrency market is having a hard time gaining upward momentum. Regulatory pressure and loss of confidence in the market contribute to this. However, there are also those who see these price levels as an entry opportunity. One of these is the investment fund of 1inch, an altcoin listed on Binance. Crypto analytics platform Lookonchain shared the following regarding the purchases of this investment fund:
1inch Team Investment Fund spent 2.5 million USDC to purchase 1,609 stETH at $1,551 3 hours ago. The fund also purchased a total of 9,164 ETH ($15.07 million) on August 28 and September 5 at an average price of $1,645.
— Lookonchain (@lookonchain) October 13, 2023
Ethereum hit a 7-month low: The outlook for the altcoin is bearish
Altcoin price is at risk of trading below a significant price support. Additionally, multiple data points to a bearish outlook for the altcoin price. The ether price dropped 7% between October 6 and October 12. Thus, it fell to the lowest level in the last seven months at $ 1,520. Although there was a slight rebound to $1,550 on October 13, investor confidence and interest in Ethereum appears to be waning, as multiple metrics show.
Some argue that this move reflects broader disinterest in cryptocurrencies. It is possible to confirm this situation by the fact that searches for “Ethereum” on Google have reached their lowest point in the last 3 years. Moreover, Ethereum has underperformed the overall altcoin market cap by 15% since July.
Interestingly, this price move coincided with Ethereum’s average 7-day transaction fees falling to a 12-month low of $1.80. To put this into perspective, just two months ago these fees were over $4.70. This was considered a high cost for even starting and shutting down bulk layer-2 operations.
Derivative data and TVL decline reflects bears’ control
A closer look at derivative metrics provides insight into how professional ETH traders are positioned following the price correction. Typically, leading altcoin monthly futures trade at a 5 to 10% annual premium to compensate for lagging trade settlement, a practice not unique to crypto markets.
Ether futures premium fell to its lowest point in five months on October 12. Thus, he pointed out a lack of demand for leveraged long positions. Meanwhile, between September 27 and October 1, the altcoin price saw an increase of 8.5%. Interestingly, even this failed to push ETH futures above the 5% neutral threshold. Ethereum’s total value locked (TVL) dropped from 13.3 million ETH to 12.5 million ETH in the last two months. Thus, it showed that demand was decreasing. This trend reflects declining confidence in the DeFi sector and offering fewer advantages compared to the 5% yield offered by traditional finance in US dollars.
Given reduced demand for leveraged long positions, declining staking returns, regulatory uncertainties, and a broader lack of interest as reflected in Google Trends, the likelihood of Ether falling below $1,500 remains relatively high.
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