A few weeks back, the crypto market seemed to be dominated by derivatives for both Bitcoin and Ethereum. Additionally, during the past few months, the leverage in Ethereum (ELR) has increased to such high levels which are unheard of (The OI increases too).
This showed investors & traders were taking an extra risk in their positions.
Positive Impact on ETH Price
All of these caused Ethereum to rise by almost 30% over the past month. The Funding Rate also revealed that the majority of investors were long on Ethereum.
Tides Might Turn
However, the leverage and the passion reflected in the funding are currently beginning to decline. This can mean that investors who were at first willing to take significant risks have already made the decision to progressively close their positions. The long-term pressure from derivatives appears to be starting to lessen.
At the time of writing, the Ethereum price is $1,559.29 USD with a 24-hour trading volume of $13,427,764,204 USD. Ethereum is down 0.90% in the last 24 hours & down by 66% in the one-year timeframe.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/slump-ethereum-derivatives-signals-price-action-short-term/