Ethereum (ETH) Drops 1.47% Despite Korean Buying Spree

There has been a significant decline in Ethereum (ETH) exchange reserves as accumulation surges. This trend is particularly notable as Korean traders are leading the buying activity, as indicated by key metrics. Despite this accumulation, ETH has experienced a 1.47% decline in the past 24 hours, adding to the bearish momentum observed over the last month. However, analysis suggests that this ongoing accumulation could ignite a major market surge, especially if other key metrics remain within the bullish zone.

According to data from IntoTheBlock, demand for ETH has reached a new high over the past week, with a total of 1.8 million ETH purchased and moved into private wallets. This marks the highest net outflow since December 2022. Such a major outflow is typically associated with rising demand for ETH, as investors view the current price level as a discount, prompting strategic buys. Historically, prices tend to trend higher following such events.

Further analysis indicates that the current demand for ETH could be driven by Korean investors, who are actively buying the asset as the Korean Premium Index begins to rise. The index currently has a reading of 3.2, which is considerably higher than the selling level below 0, confirming that there is more ETH buying activity on Korean exchanges than on others. A broader outlook on global positioning in the derivatives market shows more long contracts, meaning traders are betting on a price rally. At the time of writing, the Taker Buy/Sell Ratio has moved into the buying zone for the first time since March 3, now at 1.019. This buying activity reinforces confidence in the market, as both spot and derivative traders are aligned in accumulating the asset.

ETH is currently trading within a bullish pattern marked by descending trendlines and Fibonacci levels. In the past, ETH has attempted to break out from this level on two occasions, both resulting in failed attempts. The confluence of spot and derivative market activity this time around could provide the necessary catalysts, as it coincides with the asset trading off a support level at $1,988.30. The outcome of this rally could push the price toward $2,635. However, with no major resistance ahead, ETH could see a significant jump to $2,900, surpassing a key liquidity cluster. During this rally, ETH may experience slight pullbacks