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

BlockBeats News, February 24 — 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 really needs to watch is around $1,600.

Although prices have 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 basis at multi-month lows, high and rising put skew, and open interest continuously declining since October.

In terms of trading desks, capital flows are skewed toward selling activity. However, an interesting signal appeared mid-week: 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 dissipated. As the week progressed, the market fell back into volatility, and any willingness to enter the market disappeared, indicating that the market is not yet ready to reward early positions. Marginal activity remains driven by protection rather than conviction.