Matrixport indicates lull in ETH market

According to Matrixport experts, the futures market displays a significant decrease in open interest in Ethereum following the crypto asset’s price drop. The analysts report that traders are closing their ETH positions due to macroeconomic uncertainty caused by the Fed’s strict monetary policies and trade wars.

“Despite Trump’s recent tweet about a potential Strategic Bitcoin Reserve and the upcoming White House Crypto Summit on March 7, the market remains in risk-off mode, with participants cutting exposure,” the analysts highlight.

Matrixport believes that Ethereum’s open interest has dropped to the level of summer 2024. As long as the financial sector stays volatile, market players are unlikely to open short positions for the crypto asset.

Meanwhile, a CryptoQuant expert claims that the unrealized profit ratio among Ethereum whales has dipped to a level that was only seen during the previous bear market. He points out that a considerable share of large ETH hodlers is at the profit level of the latest downward trend.

The unrealized profit of the whales who hold 1,000 to 10,000 ETH has turned negative.