The Ether network saw an increase in their smart contract deposits but another descending channel continued to pressure its price.
Ether or ETH has reached an all-time high of $4,870 on the 10th of November but such bulls have little or no reason to be celebrated. The gains of 290% have been completely overshadowed by December’s 18% drop in prices. Ether’s network value which was locked in TVLs had still increased 9 times to $155 billion.
When we look at the last few months’ price performance charts, we cannot tell the entire story. Ethereum’s present $450 billion market cap makes it one of the world’s leading tradable assets. It comes right after Johnson & Johnson.
The year 2021 would be remembered by the decentralized exchanges’ sheer growth, whose daily volume reached $3 billion, a 340% growth versus the last quarter of 2020. Still, crypto traders are notoriously short-sighted, accentuating the impact of the ongoing downtrend channel.
Ether News: The Markets Are Not Reflecting Panic Sells
In order to check if the bearishness had been instilled, people must analyze the funding rate of the futures. The inverse swaps have a rate that is embedded which changed every 8 hours. Such measures are established to avoid exchange risk imbalances. A positive funding rate indicates that longs demand more leverage.
However, the opposite situation occurs when shorts require additional leverage, and this causes the funding rate to turn negative.
Despite Ether’s 9% correction since December 24, top traders on Binance, Huobi, and OKEx have increased their leverage longs.
To increase their precision, Binance was the only exchange facing a modest reduction in the top traders’ long-to-short ratio. The figure moved from 0.98 to 0.92. However, this impact was more than compensated by OKEx traders increasing their bullish bets from 1.67 to 3.20 in one week.