Ethereum Price Weakens Near Key Support, But Traders Afraid to Open Shorts
ETH price is oscillating at a key support level and, although it is softening, data shows that traders professionals are reluctant to take a short position.
Market analysis
Ether (ETH) was stuck between $1,170 and $1,350 from Nov. 10 to Nov. 15, which is a relatively narrow range of 15%. Meanwhile, investors continue to digest the negative impact of the November 11 Chapter 11 bankruptcy filing of the FTX exchange.
Meanwhile, total Ether market volume increased 57% from the previous week to $4.04 billion per day. This data is even more relevant given the collapse of Alameda Research, the arbitrage and market-making firm controlled by FTX founder Sam Bankman-Fried.
On a monthly basis, Ether's current level of $1,250 shows a modest decline of 4.4%, so traders can hardly blame FTX and Alameda Research for the 74% drop from the high historical $4,811 reached in November 2021.
As contagion risks have caused investors to drain wallets from centralized exchanges, the move has led to increased activity on decentralized exchanges (DEXs). Uniswap, 1inch Network and SushiSwap saw a 22% increase in active addresses since November 8.
Let's take a look at derivatives metrics to better understand how professional traders are positioning themselves in current market conditions.
Margin markets show no signs of distressMargin trading allows investors to borrow cryptocurrency to leverage their trading position, potentially increasing their returns. For example, one can buy Ether by borrowing Tether (USDT), thereby increasing their exposure to crypto. In contrast, borrowing Ether can only be used to sell it short or bet on a price drop.
Unlike futures, the...
ETH price is oscillating at a key support level and, although it is softening, data shows that traders professionals are reluctant to take a short position.
Market analysis
Ether (ETH) was stuck between $1,170 and $1,350 from Nov. 10 to Nov. 15, which is a relatively narrow range of 15%. Meanwhile, investors continue to digest the negative impact of the November 11 Chapter 11 bankruptcy filing of the FTX exchange.
Meanwhile, total Ether market volume increased 57% from the previous week to $4.04 billion per day. This data is even more relevant given the collapse of Alameda Research, the arbitrage and market-making firm controlled by FTX founder Sam Bankman-Fried.
On a monthly basis, Ether's current level of $1,250 shows a modest decline of 4.4%, so traders can hardly blame FTX and Alameda Research for the 74% drop from the high historical $4,811 reached in November 2021.
As contagion risks have caused investors to drain wallets from centralized exchanges, the move has led to increased activity on decentralized exchanges (DEXs). Uniswap, 1inch Network and SushiSwap saw a 22% increase in active addresses since November 8.
Let's take a look at derivatives metrics to better understand how professional traders are positioning themselves in current market conditions.
Margin markets show no signs of distressMargin trading allows investors to borrow cryptocurrency to leverage their trading position, potentially increasing their returns. For example, one can buy Ether by borrowing Tether (USDT), thereby increasing their exposure to crypto. In contrast, borrowing Ether can only be used to sell it short or bet on a price drop.
Unlike futures, the...
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