Wintermute: The level ETH truly needs to pay attention to is around $1600, institutional demand has not returned yet
BlockBeats News, February 24th, Wintermute posted a market report on social media stating that since the cascading liquidation two weeks ago, BTC has attempted to break above $70,000 multiple times without success. The lack of a convincing rebound attempt is more compelling than the ranging itself. Price action is choppy, liquidity is thin, the range is narrowing, and there is a lack of directional conviction. ETH fell below $1900 this week, a level that is more psychologically significant than technically important, with the level of real concern for ETH being around $1600.
Despite price stabilization, institutional demand does not seem to have returned, as was distinctly visible in the price range between $85,000 and $95,000 earlier. The derivatives market reflects a lack of directional views and trading interest, with the basis at multi-month lows, put option skew elevated and rising, and open interest continuously declining since October.
On the exchange front, fund flows are skewed towards selling activity. However, an interesting signal emerged midweek, with high-net-worth investors briefly showing interest in some altcoins. In an overall defensive environment, this was a small but noteworthy spark of confidence, though it quickly faded. Moving into the latter half of the week, the market once again entered a phase of ranging, with any willingness to enter positions fading away, indicating that the market is not yet ready to reward early positioning. Marginal activity remains driven by protection rather than conviction.
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