- Large short position brought attention to ETH’s next potential move.
- ETH sell pressure grew, but bears remained resilient.
Now that the crypto market is cooling down after last week’s rally, it is important to look at what’s happening on the sidelines. Ethereum [ETH], in particular, reached a noteworthy level at press time, giving rise to bearish expectations.
Is your portfolio green? Check out the Ethereum Profit Calculator
ETH’s upside recently pushed into an end-of-May and early June resistance level. The bulls have consequently gone into a recess, thus leading to a surge in bearish expectations. As such, short positions are piling up.
A recent analysis took a look at one particularly interesting large short position.
A $12 million short position on ETH meant that some whales were optimistic about the potential downside opportunities. Such positions will cash out large if the price dips. On the other hand, they stand to lose if the bulls resume control over the market.
A look at ETH’s long versus short ratio reveals that both are almost evenly matched, with longs slightly higher.
The level of shorts and longs is an important indicator. This is because it has the potential to determine the market outcome. Higher short positions than longs may discourage short-term holders and trigger sell pressure.
On the other hand, short position liquidations, especially in large amounts, may trigger more bullishness.
Are the bears on the hunt?
The opposite is true for heavy liquidation of long positions. It thus warrants a look at factors such as leverage
Go to Source to See Full Article
Author: Michael Nderitu
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
