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Wednesday, August 10, 2022

Ethereum Price Has Dropped Below $3,800

Although the price of Ethereum had reached its all-time high of $4,870 back in November, there was little reason for market bulls to celebrate. The year-to-date gain of 290% has been completely overshadowed by the 18% price drop that was seen in December. Even then, the network of ETH saw its total value locked in smart contracts increase to around $155 billion.

If one were to look at the last couple of months’ price performance of the cryptocurrency, not much makes sense, as the market cap of the cryptocurrency currently stands at $450 billion- making it one of the top 20 tradable assets in the world. 

Ethereum Loses Out Before The Year Ends

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While 2021 should definitely be remembered for the sheer growth that most decentralized exchanges saw with the daily volume reaching a sum of $3 billion, a growth of 340% in the early part of the year did hamper the loss of Ethereum in the last quarter of 2020. Still, most of the crypto traders have been quite notoriously short-sighted, as they accentuated the impact of the ongoing downtrend channel. 

Despite the 9% price correction of Ethereum since the 24th of December, most of the top traders of Huobi, Binance, and OKEx have gone ahead and increased their leverage longs. To be more precise, Binance has been the only exchange that has seen a modest reduction in the long-to-short ratio of top traders. The figure then has moved from 0.98 to 0.92. However, the impact was more than compensated by the traders of OKEx increasing their bullish bets in just a single week. 

As of now, there is barely any sense of bearishness currently present in the market. According to the data at hand, most of the pro traders have been buying the dip while the net demand of the retail investors for shorts hasn’t seen any significant change throughout the last month. Obviously, none of this can predict when Ethereum would end up flipping the current descending channel, but one could infer little interest emanating from it. 

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