Wintermute: The level that ETH truly needs to watch is around $1,600, and institutional demand has not yet returned.

On February 24th, Wintermute released a market report on social media stating that since the chain liquidations two weeks ago, BTC has repeatedly attempted to break above $70,000 but has failed. There have been no significant rebound attempts, and this fact is more convincing than the range-bound movement itself. Price action remains volatile, liquidity is thin, the range is narrowing, and there is a lack of directional conviction. ETH fell below $1,900 this week, a level that is more psychologically significant than technically; the level ETH truly needs to watch is around $1,600. Although prices stabilized, institutional demand does not seem to have returned, as clearly seen in the previous price range of $85,000 to $95,000. The derivatives market reflects a lack of directional views and trading willingness, with the basis at multi-month lows, put skew high and rising, and open interest continuously declining since October. On the trading desk, funds are leaning toward selling activity. However, an interesting signal emerged midweek: high-net-worth investors briefly showed interest in buying some altcoins. In an overall defensive environment, this was a small but noteworthy spark of confidence, though it quickly faded. As the week progressed into the second half, the market fell back into consolidation, with any willingness to enter the market fading, indicating that the market is not yet ready to reward early positions. Marginal activity remains focused on protection rather than conviction.