Journalist
Posted:
- ETH prices have made a moderate recovery and rose 1.88% in 24 hours.
- The short positions of Ethereum affect a historic high point of $ 11.3 billion.
In the past two weeks, Ethereum [ETH] is stuck within a $ 2.5k and $ 2.7k consolidation range. As such, both bulls and bears have tried to have total control over the market without success.
In the past day, this battle escalated to extreme levels, with Ethereum saw a record -breaking number of short positions.
$ 11.3 billion short positions opened for Ethereum
On the last day, a total of $ 11.3 billion in short positions were opened for Ethereum, which is now the highest history.
Source: X
Such a high number of short positions means that most traders expected prices to fall, which reflect strong arary.
It is remarkable that mass short positions often result in high downward pressure, because sellers dominate the market.
This dominance by sellers is further demonstrated by an increase in the order to the benefit of sellers. As such, a bearish crossover arose to order imbalance that indicates more sales orders than buying orders.
Source: Mobchart
If the ETH price drops, more shorts can accumulate, leading to further decline.
What it means for ETH
While Ethereum saw that historical short positions were opened as prices started to fall, the prices recovered from $ 2604 to $ 2670 shortly thereafter.
ETH prices even saw a reversal to reach a highlight of $ 2698. Such a sudden reversal means that Ethereum experienced a short pinch after many short positions.
This means that these short positions were forced to close, which strengthens the prices upside down. That is why the markets are optimistic in the short term and futures are returned to the market.
Source: Coinalyze
Moreover, Ethereum’s futures basis has all been restored and became positive from this letter. This suggests that Futures act a higher rate than spot prices, which implies that traders are bullish about future prices.
Source: Messari
This is further validated by the financing speed (OI weighed), which became positive after the previous decline to negative territory.
A positive financing rate means that investors are willing to pay a premium compensation to cover their position, which is a reflection of Bullish Sentiment.
Simply put, although Ethereum has experienced record -breaking short positions, Beren did not take the market again. ETH will continue to trade sideways because both bulls and bears have no strength to dominate the market.
If the moderate profit holds on the daily cards, ETH will try to take a step to $ 2723. With still sellers who are still on the market, a retreat here could see ETH fall to $ 2.6k.