After staying below $2k for three consecutive days, Ethereum has successfully reclaimed this crucial level, reaching a peak of $2092. At this time, the cryptocurrency was trading at $2059, showing a modest increase of 0.46% on the daily charts, indicative of increased volatility. As ETH struggles to maintain its position above 2k, whales are adopting a bearish stance and are actively shorting the market. After ETH climbed back above $2k, a significant amount of shorts were liquidated. Data indicates that over $38 million in short positions were liquidated, whereas long positions experienced $31 million in liquidations. Despite a rising short liquidation rate over the past day, some whales are unfazed and persist in shorting the market.
Onchain Lens reports that a whale has deposited $4.89 million into HyperLiquid, subsequently opening an ETH short position with 20x leverage. A significant player entered the market with a position of 9,887 units, totaling $20 million. When large investors initiate short positions, it typically indicates a bearish sentiment and an expectation for the market to decline once more. Interestingly, while whales are engaging in shorting, their participation in the Futures market is quite limited. CryptoQuant’s Futures Average Order Size data indicated a significant increase in ongoing retail orders. Retail traders have surged in around 2.04k and 1.9k, a trend that has continued throughout March, effectively pushing larger investors aside. Interestingly, their participation over the past three days has predominantly leaned towards buying, as indicated by the positive trend in Derivatives Taker Buy Sell. A positive value here suggests that retailers have been actively engaging in positions.
Recently, the altcoin’s Long Short Ratio increased to over 1.008, according to the latest update, with an average of 1.7 across Binance and OKX. When the ratio goes beyond 1, it shows that most market participants are taking long positions. This underscores the disparity between individual investors and the attitudes of major players in the Futures market. Ethereum saw a surge, reclaiming the $2,000 mark as short traders hurried to cover their positions. At the same time, there was a notable increase in interest for long positions among smaller traders. However, the short covering was not enough to drive ETH to notable increases. The momentum kept showing signs of decline, making the bounce a temporary event. The MACD indicates that the momentum indicator remains in negative territory, currently at -19 as of this writing. A negative MACD shows that the downward force has significantly outpaced any possible upward movement.
The Upside Downside Volatility has certainly strengthened this trend, indicating Upside Volatility around 2.07, whereas the downside is notably higher at 2.9. This indicates that sellers are showing increased assertiveness, leading to more significant declines compared to rises. These market conditions suggest a significant likelihood of an approaching market decline. If the current negative sentiment continues, ETH could fall below the $2,000 level again, with $1,900 acting as immediate support. However, if capital flows into the derivatives, it could boost market demand, allowing the altcoin to maintain its position at $2k and aim for $2225.