Journalist
Posted:
- ETH prices have made a moderate recovery, up 1.88% in 24 hours.
- The short positions of Ethereum reach a historic summit of $ 11.3 billion.
In the past two weeks, Ethereum (ETH) has been stuck in a consolidation range of $ 2.5,000 and $ 2.7,000. As such, bulls and bears tried to have total market control without success.
The last day saw this battle intensifying at extreme levels, Ethereum seeing a record number of short positions.
Short positions of $ 11.3 billion was opened for Ethereum
During the last day, a total of $ 11.3 billion in short positions was opened for Ethereum, which is now the highest in history.
Source: X
A number of short positions implies that most merchants expect prices to decrease, thus reflecting strong lowering feelings.
In particular, massive short positions often cause high pressure high because sellers dominate the market.
This domination of the sellers is also evident by the imbalance of the ordinances of the end of the sellers. As such, a lower crossover emerged on the imbalance of orders indicating more sales orders than purchase of orders.
Source: Mobchart
If the price of the ETH drops, more shorts could accumulate, resulting in additional drop.
What it means for eth
While Ethereum has seen short historical positions open while prices have started to drop, prices were returned shortly after $ 2,604 to $ 2,670.
In fact, ETH prices have seen a reversal to reach a summit of $ 2,698. Such sudden reversal implies that after the opening of many short positions, Ethereum experienced a short pressure.
This implies that these short positions were forced to close, strengthening prices upwards. Consequently, in the short term, the markets are optimistic and the future returns to the market.
Source: Coanyze
In addition, the base of Futors of Ethereum has all recovered and has become positive to date. This suggests that term contracts are negotiated at a higher rate than cash prices, which implies that traders are optimistic about future prices.
Source: Messari
This is also validated by the financing rate (weighted by OI), which has become positive after the previous decline in the negative territory.
A positive financing rate implies that investors are ready to pay bonus costs to hold their position, reflecting a bullish feeling.
In simple terms, although Ethereum has experienced short record positions, the Bears failed to resume the market. ETH will continue to be negotiated on the side, because bulls and bears have no strength to dominate the market.
If the moderate gains on daily graphics are held, ETH will try a movement around $ 2,723. However, with the sellers still on the market, a trace here could see ETH fall at $ 2.6,000.
