Ethereum Strengthens on Rising Long Positions
At $1.8k, Ethereum’s price has remained stable. Having recovered from $1800, the altcoin has shown remarkable tenacity, increasing its value to $1876. The current price of Ethereum is about $1866, showing a small increase of 1.7% on a daily basis. Large investors showed optimism and started long positions as ETH lingered around $1.8k. Lookonchain reports that two newly-created wallets moved their 72 Bitcoin holdings, valued at $4.66 million, to Ethereum. The trader created a 20x long position in 12,000 ETH, valued at around $22.4 million, after the liquidation of BTC. With Ethereum maintaining its position above the entrance price, the whale has made $275,000 after paying $5.8,000 in funding costs. Since the trader was selling Bitcoin for Ethereum, the whale saw Ethereum as a better option and a better investment.
Buyers have shown a significant rebound in the market, therefore this whale is not an unusual event. For two days in a row, the Derivatives Taker Buy-sell Ratio has remained unchanged at 1, showing no signs of increasing. With a value of 1.13, it appears that there was a higher volume of buy orders completed on the derivatives side. As a result, a substantial amount of money has been put into Futures holdings. Futures positions saw $3.67B in inflows and $3.32M outflows in the last day. This resulted in a substantial infusion of capital into new positions, as Futures Netflow increased by 213% to $351.1 million. Also, it seems like a lot of these monies have gone into making long positions, which is also significant.
With an average of 2, Binance’s Long/Short Ratio has maintained a constant value above 1. This indicates that a bigger group of traders kept a positive outlook and expected ETH price charts to rise even more. Buyers of Ethereum, particularly in the derivatives market, have started to reassert their dominance. Actually, the altcoin’s True Strength Index has been steadily going higher, and it’s now at 15. A strengthening bullish trend is indicated by a rising TSI, which means that buyers are increasingly recapturing the market. When this indicator goes higher, it usually means the uptrend is getting stronger and will probably stay.
The Momentum Adjusted Moving Average confirms that this trend is strong. With a price of $1848 and a position above the MaMa and the Positive Feedback Band, ETH is trading at $1875. Given these conditions, assuming buyers maintain their positions in the derivatives market, the cryptocurrency is poised to surpass $1900 and keep climbing. Ethereum needs to maintain a price above $1875, which is the MaMa’s Positive Feedback Band, if we want this bullish trend to continue.
