ETH Experiences 3% Dip Amid Early Signs of Profit-Taking
Market Overview
As Hong Kong starts trading, ETH is priced above $4600, down 3% on the day but up nearly 16% in the past week and 45% over the last month.
Key points:
- ETH/BTC ratio surpassed its 365-day moving average, indicating potential extended ETH outperformance.
- Recent data suggests near-term cooling; ETH inflows to exchanges have exceeded Bitcoin's, signaling profit-taking by holders.
- ETH's MVRV ratio against BTC rose from 0.4 in May to 0.8, nearing historical overvaluation levels.
- FlowDesk reported $1 billion in single-day ETH ETF inflows but noted increased call overwriting in ETH options, suggesting capped upside expectations.
- Macro indicators show softer CPI and potential for a Fed rate cut, but upcoming economic prints could impact sentiment.
- Profit-taking signs are emerging amid strong structural drivers like ETF demand and institutional participation.
Market Movers
BTC: Decreased over 3% following U.S. inflation data that diminished rate cut prospects.
ETH: Dropped 3.3% as traders take profits after recent highs.
Gold: Fell 0.62% to $3,336.6 due to strengthening dollar and yields impacting rate cut expectations.
Nikkei 225: Opened higher with Japan's economy growing an annualized 1.0% in Q2, despite warnings of potential growth slowdowns from U.S. tariffs.
S&P 500: Stalled as hotter-than-expected PPI impacted rate cut hopes; Goldman Sachs indicates increased risk of a drop due to low volatility and tariff concerns.