Wintermute says Ethereum (ETH) is the “wrong asset for this macro” after Ethereum fell 10.2% last week. Additionally, the ETH/BTC ratio collapsed to 0.0275, its lowest reading since July 2025.
The market maker noted that Ethereum is still lagging in both the spot and derivatives markets. Several additional indicators also pointed to a bearish outlook for ETH.
“ETH -10.2%, weak performance continues across spot and derivatives. ETH/BTC presses 0.0275, funding is softer, and relative implied volume is high. False assets for this macro,” mail He reads.
Ethereum Binance reserves rise as sell-side liquidity increases
Institutional demand for Ethereum It slowed sharply last weekWith Ethereum spot ETFs recording $255 million in outflows. This marks their largest weekly withdrawal since late January. The vulnerability was not limited to ETH, such as Bitcoin exchange-traded funds Net outflows were also recorded During the same period.
Meanwhile, Ethereum reserves on Binance increased from 3.4 million ETH to nearly 3.8 million ETH throughout May, according to Cryptoquant data.
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Total ether reserves across exchanges also increased from 14.5 million to 14.94 million during the same time frame, indicating higher potential sell-side liquidity.
Bearish positioning can create pressure
However, not all The indicators are negative. Santiment wallet data showed that whales holding between 1 million and 10 million ETH increased their holdings from 6.15 million to 6.54 million ETH between May 1 and May 20. It accumulates approx 390,000 Ethereum.
Mid-tier wallets holding 10,000 to 100,000 ETH moved in the opposite direction, reducing holdings from 27.77 million to 27.27 million ETH over the same period. The split indicates that supply is consolidating in stronger hands even as short sellers dominate the tape.
Additionally, analyst Darkfost highlighted that the weekly buy/sell ratio on Binance fell to 0.91, the lowest reading since September 2023. A reading below 1 indicates that sellers are dominating the order flow, a condition that may precede a short squeeze as positioning becomes too one-sided.
“What makes this situation interesting is that it comes as ETH continues to trade within a broad range of roughly $1,500 to $4,000, while it has already corrected by about 9% over the past seven days,” the analyst said. He said. “The more aggressively investors position themselves on the short side, the greater the risk of a short squeeze.”
The accumulation of large whales and a buy/sell ratio of 0.91 indicate increasing subsurface pressure. The next move will likely come from whichever side capitulates first, with macro data and the Federal Reserve Comment in the coming weeks Potentially serving as a trigger.
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this post Wintermute calls Ethereum a “wrong asset for macro” as Ethereum/Bitcoin hits 10-month low appeared first on BeInCrypto.
