ETHFI’s momentum is strong. Since the altcoin held the $0.30 level earlier this week the altcoin posted higher highs. It reached a local maximum of $0.38.
This is the current date. ether.fi [ETHFI] On the daily charts, a $0.37 price was traded. That’s an 11.24% increase. The trading volume rose by 72% and reached $58 million. Market cap also increased by 12%.
The altcoin regained the Exponential Moving averages (EMAs), which were at $0.34 and $ 0.36 respectively, indicating a strengthening upward momentum.
How is this demand increasing?
During the last week of June, sellers of ether.fi showed signs of fatigue after dominating market in the previous weeks. The shift in the market allowed buyers to successfully defend $0.30.
Buyers have now outpaced sellers. CoinGlass data shows that Spot Netflow has been negative for the past four days.
Spot Netflow improved to -$188k by the time this article was published, from a previous -$492k.
Negative Spot Netflow for a sustained period indicated that the demand was still strong on all markets. A stronger demand for Spot has historically supported higher price performances.
The momentum has accelerated in the last day.
The Directional Movement Index formed a bullish cross-over, and the positive index climbed to 26.
The negative index fell to 15 while the Average Directional Index (ADX), which measures the direction of the market, rose to 19 This setup showed a strengthening of bullish momentum, as the selling pressure decreased.
If buyers retain control, ETHFI can reclaim its 100-day Exponential moving Average (EMA), which is near $0.40.
Why is it that derivatives trading remains cautious?
Derivatives traders reduced their exposure despite the strong spot market.
Data from CryptoQuant on the Futures average order size showed that whales were active through out the recent recession.
Whales continue to participate in Futures markets, as evidenced by large orders. But the selling pressure was still high.
During the month of September, Futures transactions totaled $338 Million.
In perpetual Futures, the same trend was observed.
The volume of perpetual sales has risen to $88million in the last seven days. A seller-dominated derivatives market suggests that traders remain unconvinced of a long-term recovery. Many traders instead appeared to be reducing exposure to strengths.
The continued caution was a threat to the sustainability of the rally. Ether.fi may revisit its $0.30 resistance if selling pressure continues.
Summary
- ETHFI gained 11 percent as buyers defended $0.05 and regained key short-term EMAs.
- The Negative Netflow of Spots indicates that despite recent volatility, buyer demand is still strong.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
