Ethereum closed with lower lows after it received a rejection of $2466, falling to a minimum of $2252. At the time of publication, ETH was trading at $2,271, down by 2.55% from its daily high.
Both short and long positions liquidated at a record rate. CoinGlass showed that 120 million dollars in positions liquidated with 102 millions in long positions.
Ethereum Whale opens up 44,000 long ETH valued at 100 million dollars
In spite of the increasing liquidations on the market, many traders have maintained a strategy. The derivatives taker buy sell ratio turned positive once again. This signals a return of buyers.
After the market hit $2.4k traders began making profits in the derivatives marketplace. In response, the Taker Buy/Sell Ratio declined below 1, hitting a new low for three weeks of 0.
After two days the number rose to 1.102 at time of press. These levels indicate that whale traders and other traders have begun to open new positions.
Lookonchain Reports of whale traders have been reported. Matrixport’s whale, which previously made over $398.47 with a $68.47 profit, has reentered the marketplace.
You can also read our article on After Ethereum [ETH] Dropped to $2.2, he returned and created a position of 44,000 ETH, worth approximately $100,000,000. The position has lost $722k so far and spent more than $5k of funding.
Opening a long-term position was a sign of bullishness, because the whales were looking for a trend change. The majority of market participants however are shorting it.
This metric, the Funding rates, has been negative for 4 consecutive days. The majority of investors expect the prices to drop, if funding is negative.
The bullish press is fading but in control
ETH saw new positions reopen but the rising demand for futures is not enough to drive a quick-term recovery. The altcoin is actually below both the Positive Feedback Band and Moving Average of Moving averages at $2272 as well as the Moving Average.
It is possible that this trend will continue to decline, and bearish momentum will increase.
Bullish and bearish market pressures are equal in the Directional Imbalance Index.
A market in such a state is at a critical decision point. If the bulls continue to exert pressure, altcoins will move up above the Positive Feedback Band of $2,317 and flip MaMA.
If you move the altcoin above this level, it will be strengthened towards the upper MaMa-EMA band at $2.4. However, if this recent weakness persists then ETH may breach the Negative Feedback Band of $2210 to drop down to $2170.
Final Summary
- Matrixport’s whale wallet, which is linked to Matrixport, opened up a long of 44,000 ETH valued at 100 million dollars after having previously cashed out $68 millions.
- Ethereum’s structure has not changed despite the short-term decline, as long as ETH is trading above $2270.
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Source: ambcrypto.com
