Ethereum (ETH) traders have quickly entered extreme bullishness following the recent crypto market crash. According to market data analysis from Santiment, Ethereum traders expect a strong recovery in the coming days after a series of deleveraging.
Source: Santiment
However, Santiment warned Ethereum traders that they were becoming extremely bullish as history has proven that the market often moves in the opposite direction of the public’s expectations.
Why Are Ethereum Traders Turning Extremely Bullish?
Renewed demand from whale investors in a supportive macro environment
Ethereum traders have turned extremely bullish in the recent past due to notable deleveraging and renewed demand from whale investors. For example on the chain data analysis shows Tom Lee-led BitMine has bought into the recent market dip, withdrawing ETH worth about $70 million on Thursday.
Ethereum traders had expected a bullish recovery as Wall Street gradually turns to altcoins. Ahead of the Fed’s expected quantitative easing (QE), institutional investors have built on Ethereum through Digital Assets Treasuries (DATs), spot Exchange-Traded Funds (ETF), and tokenization of real-world assets (RWA).
Technical tailwind ahead of the expected 2025 altseason
From a technical analysis point of view, ETH price has retested a crucial support level, which previously acted as a resistance level for a long time.
Source: X
With ETH’s daily Relative Strength Index (RSI) hovering around the oversold level, a potential recovery to a new all-time high is highly likely. However, if the Ether price consistently falls below the support level above $3000, an outright bear market will be inevitable in the following months.
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