Ethereum’s price experienced a negative reaction to the hack. At the time of writing, ETH was trading at $2,705, reflecting a 3.49% decline on the day. The dip also extended to the weekly and monthly charts, with Ethereum falling by 2.89% over the past week and 18.8% over the past month.

However, despite these setbacks, investors are not panicking. The buying sentiment among Ethereum investors remains strong, evidenced by several key indicators.

Strong Investor Sentiment and Continued Buying Pressure

Ethereum’s Taker Buy-Sell Ratio has spiked to 1.085, indicating that buyers are outpacing sellers. When the ratio is above 1, it signals that more buying orders are being placed than selling ones, suggesting stronger demand for ETH. This uptick in buying pressure suggests that investors continue to have confidence in Ethereum, even after the recent news of the hack.

Additionally, U.S. investors, particularly institutions, continue to accumulate ETH. This trend is supported by a positive Coinbase Premium index, which recently recovered after briefly dipping into negative territory. When the Coinbase Premium is positive, it indicates that U.S. investors are aggressively purchasing the cryptocurrency, further supporting the idea that Ethereum remains a strong investment.

Ethereum’s Scarcity and Price Potential

Along with the ongoing buying activity, Ethereum’s Stock-to-Flow (SFR) ratio has surged to 99.13, indicating an increase in scarcity. A rising SFR means that the amount of ETH available in the market is decreasing relative to demand, which could push the price higher if demand continues to remain strong or increase. This growing scarcity could contribute to upward price pressure in the future.

Ethereum’s Near-Term Outlook

Despite the hack and the negative price movement, Ethereum is experiencing strong buying activity. Investors appear confident, as evidenced by the positive Coinbase Premium index and the higher Taker Buy-Sell Ratio. These indicators suggest that ETH may continue to trade within a range of $2,500 to $2,800 in the near term, with the potential for price appreciation if demand remains strong.

In conclusion, while Ethereum has been impacted by the recent hack, the overall sentiment remains positive. Buyers continue to accumulate ETH, and the growing scarcity of Ethereum in the market suggests a solid foundation for future growth. Ethereum is expected to trade sideways in the short term, but the long-term outlook remains favorable as long as demand continues to outpace supply.