After encountering resistance at $2567, Ethereum has fluctuated within a narrow range. The altcoin has remained in a state of stagnation. 2.3k and 2.4k, reflecting a market at a decision point. Ethereum traded around 2420, marking a 2.5% slip on the daily charts. Despite a notable deceleration in ETH, there remains a persistent demand for long positions among high net worth traders. With Ethereum struggling to maintain upward momentum, traders who had previously opened long positions are experiencing losses. Data indicates that long positions amounting to over $63.6 million were liquidated, in contrast to $12.6 million in short positions.
When longs are compelled to exit, it generally contributes to increased selling pressure in the market, thereby exacerbating a price decline. Despite the increasing risks associated with liquidation, certain investors, particularly those with substantial holdings, are maintaining their positions and persist in establishing new ones. Lookonchain reported that a trader initiated a 25x long position on 18,587 ETH, amounting to $44.85 million. This significant player reemerged and made this wager following a period of seven months without activity. When the whale takes a long position, it indicates a sense of optimism, expecting that the slowdown will abate and lead to further gains for Ethereum.
Traders on Binance and OKX are predominantly establishing long positions. The Long/Short Ratio across these two exchanges remains above 1, with Binance at the forefront, registering a ratio of 2.7. Frequently, robust demand for leveraged positions has resulted in significant short-term price increases. While whales in the Futures anticipate a price increase, in the Spot market, one whale has been actively selling off assets. According to Lookonchain, the whale has deposited a total of 103,252 ETH, amounting to $253 million, into multiple exchanges. Following the deposit, the wallet retains 64,603 ETH valued at $155 million, which are also expected to be liquidated. The ongoing selling pressure has exerted considerable strain on the market, thereby undermining the market structure. Indeed, momentum indicators have begun to reflect this market weakness.
Since the occurrence of a bearish crossover, the Relative Strength Index has declined to 63. Despite the decline, it remains within the bullish territory, indicating that buyers continue to engage in the market. The MACD has also established a bearish crossover, which further corroborates this trend shift. The two bearish crossovers indicate a growing aggressiveness among sellers. Frequently, the assertiveness of sellers has led to increased losses. If the bearish trend shift holds, Ethereum is likely to drop to $2.2k.However, if bulls in the derivatives market persist in deploying capital, the resulting demand will propel ETH to ultimately surpass $2.5k.
