Ethereum: Why ETH’s move above $4K may not last long

witnessed a massive surge in interest as bullish sentiment around the crypto sector grew, which was led by the approval of the Bitcoin ETF. However, as time passed, it seems that the bullish tides have changed with respect to Ethereum.According to QCP’s data, ETH risk reversals to negative suggests an increased demand for put options as a safeguard against potential losses from speculative long positions.

Altcoin speculators may also be acquiring ETH puts to hedge against downward movements in altcoin prices. These trends raise concerns about a potential market correction, particularly given the considerable leverage in the market.The shift to bearish sentiment may be due to upcoming events that could cause volatility in ETH’s price. One of them would be the upcoming Dencun upgrade which is set to go live at 13:55 UTC and may impact price and sentiment.

The anxiety around the upgrade is expected as not all of the upgrades have had a bullish impact on ETH’s price. For instance,At press time, ETH was trading at $4046 and had steadily climbed to this price level. Despite making a few minor corrections, the overall trend remained bullish. However, the OBV for ETH declined significantly over the last few days. This suggests that the selling pressure outweighed the buying pressure, potentially indicating a weakening trend or a forthcoming price decline.The network growth for ETH had also grown suggesting that new addresses were continuing to show interest in ETH. Coupled with that, the total number of holders accumulating ETH had also surged.

However, while looking at the behavior of addresses as a whole, it was observed that it was retail investors that were showing more interest in ETH.Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.Subscribe to get it daily in your inbox.

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