Ethereum's Recovery Remains Elusive Amidst Pro Trader Skepticism

Ethereum Price May Have Bottomed, but Pro Traders Show Little Interest in Buying ETH

The Ethereum price has been stuck in a rut for weeks, and while some analysts believe it may have finally bottomed out, professional traders are showing little interest in buying in. According to data from popular trading platform Binance, open interest in Ethereum futures has plummeted to its lowest level since the contract's inception in 2020.

As of press time, the Ethereum price is trading at around $2,600, down from its all-time high of $4,900 in November 2021. Despite the significant decline, many professional traders are hesitant to take a bullish stance on the asset.

"This is a classic case of a market that's stuck in a trading range," said Alex Krüger, a well-known cryptocurrency analyst. "Until we see a clear breakout above $3,000 or a convincing breakdown below $2,200, I wouldn't be surprised if ETH continues to trade sideways for the foreseeable future."

Krüger's assessment is echoed by other market observers, who point to the lack of institutional investment and the ongoing bearish sentiment in the broader cryptocurrency market as reasons for the lack of interest in buying Ethereum.

"Until we see a significant increase in institutional investment and a corresponding rise in market sentiment, I don't think we'll see a meaningful rally in Ethereum or any other cryptocurrency," said Ryan Radloff, CEO of cryptocurrency trading platform Radswap.

Despite the pessimism, some analysts remain optimistic about Ethereum's long-term prospects. According to a recent report by investment firm Delphi Digital, the Ethereum network's growing decentralized finance (DeFi) ecosystem and increasing adoption of its proof-of-stake (PoS) consensus algorithm could ultimately drive the price higher.

"While the short-term picture may be bleak, I think Ethereum's fundamentals are strong enough to support a sustained rally once the market turns," said Delphi Digital's research director, Kevin Kelly. "As more institutions and individuals become aware of Ethereum's potential, I think we'll see a significant increase in demand and a corresponding rise in price."