Ethereum’s price has not yet made a significant recovery since it fell from an all-time peak of $4.953 set in September.
The current data indicates that the price is hovering at around $3,000. This shows investors are in a crucial decision phase.
The market data for the last day swung primarily against bulls. But the liquidity that has been injected by bullish traders indicates they will not back down.
AMBCrypto’s Analysis combines these factors to try and make sense of the future for Ethereum [ETH].
Whales double down
Onchain Lens, in a recent report tracking a popular crypto whale—an investor holding a large amount of funds—identified as “MachiBigBrother,” reveals a unique trading pattern.
The whale doubled its position on ETH after losing $1 million in a prior ETH trade. It also recorded a broader loss of $21.3 millions.
CoinMarketMan
CoinMarketMan’s Whale Tracker indicates that MachiBigBrother is currently holding a $14,000,000 ETH long, indicating a strong level of confidence about a possible move upward.
Although this could be a sign that ETH is on the rise, there’s no guarantee. Especially when considering recent trader losses. It is therefore a very high-risk trade.
Bullishness can be tricky
Recent bets placed by the whale may prove difficult, since long-position holders still face heavy market pressure.
The liquidation data that helps to track price potential shows going long in the last 24 hours was largely unsuccessful.
Long-term investors lost $121.6 Million in Ethereum while short traders only lost $62.7.
Long traders have lost almost twice as much money as short trader within the same time period. This reinforces the short-term bearish sentiment.
CoinGlass
Similarly, a similar view is evident among traditional investors as they sold a large portion of their ETH investments.
The total amount of outflows was $112.7 over the two most recent trading days. The market may not be fully bullish if this kind of behavior is seen. This can lead to investors taking on a high-risk position at the moment.
The bulls have gone all-in
However, bulls seem to be all-in on ETH. Combining Open Interest with OI Weighted Funding rate suggests traders are planning for an eventual rally.
The Open Interest (which measures the value of all outstanding derivatives) shows that new capital worth $2.3 billion entered the market in the last day.
CoinGlass
The positive OI Weighted Funding Ratio suggests that most of the capital coming in is from traders who are bullish.
It could mean that, as capital flows increase and the OI Weighted Funding rate continues to climb, the market will gradually shift toward a more positive outlook.
Conclusions
- After a long market liquidation that accounted for $121,000,000, the crypto whales increased their ETH holdings.
- A new capital inflow could be a sign of upcoming bullish weeks for ETH.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
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Source: ambcrypto.com
