fbpx
9.5 C
London
Saturday, May 15, 2021

Ethereum Price Inching Closer to Record HighWhile Pro-Traders Become Bearish

The price of Ethereum is again back on track and inching closer to a new all-time high with an exponentially high pace. On the other hand, this crucial derivatives metric of ETH indicates that the pro traders have been showing caution.

Ethereum prices have recently declined by almost 19.6% on 18th April. This has led to a rapid liquidation of the futures long contracts worth almost $1 billion. Even though the size of this massive liquidation along with their impact on the ETH prices, the interest of the open future is intact over $20.5 billion. This indicates 5% less than last month.

Market Ventures Of Ethereum

- Advertisement -

Following the sell-off, many signs have been revealed that suggest there is a deterioration in investor sentiment. This was made clear in the derivatives markets. According to the past records, there was a much higher demand for borrowing Ethereum longs.

The longs demand is much higher as compared to the shorts. During the last few days, the ratio of ‘long to short’ has switched and hit the lowest mark since 2018 December.

In addition, there has not been much news that might justify the considerable price correction. Ethereum did not have any direct relation with the shares receding on Coinbase, Bitcoin hash rate decline, or Jim Cramer, TV host, calling BTC ‘phoney money’.

- Advertisement -

Nonetheless, investors must be concerned regarding the possibility of strict crypto regulation. During the weekend, unconfirmed news stated the US Treasury Department will get money laundering allegations. Yet nothing emerged yet.

On Bitfinex, Ether longs have spiked 65% than shorts since the past 2 months. On 2nd April the indicator changed showing a favorable number for shorts since their low dive in 2018 December.

For the last 2 months, the average transaction expense has been almost $16 that makes it impractical for small transactions.

- Advertisement -

Follow Us

16,985FansLike
4,865FollowersFollow
1,643FollowersFollow

Latest news