Ethereum Surge Spurs Risky Bets Despite Potential Selling Pressure
tl;dr
The recent price increase of Ethereum (ETH) appears to be leading traders to take riskier bets. While the overall sentiment is bullish, some indicators suggest that selling pressure could emerge.
Ethereum’s Price Increase and Its Impact on Trading Behaviour
Ethereum recently broke through the resistance mark of $2,600, which has been defended by sellers since mid-January. This uptrend led to a sharp increase in Open Interest (OI) – the number of open and not yet settled contracts – behind Ethereum. The last time the OI was at $5.4 billion was in March 2022.
The Bullish Sentiment Behind Ethereum
In addition to the increase in OI, the funding rate, which has been consistently positive over the past three months, also signaled a bullish conviction behind Ethereum. This shows that long positions – bets on rising prices – have been dominant in recent months.
Potential Selling Pressure on Ethereum
Despite the overall bullish sentiment, the increasing amount of Ethereum on exchanges suggests that selling pressure could increase and potentially wipe out the gains made in recent weeks. Addresses holding Ethereum worth up to $10 million have likely sold in the past three months.
Our Assessment
Although the sentiment around Ethereum is overall positive, investors should keep an eye on the rising selling pressure. It is important to monitor market dynamics and various indicators to make informed decisions.
Sources: AMBCrypto, Santiment, Akashnath S, Saman Waris.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Price | $3,101.58 |
| 24h % | -2.79 % |
| 7d % | 6.33 % |
| 30d % | 17.88 % |
| 60d % | 34.18 % |
| 1y % | 54.17 % |
| Market Cap | $373,019,810,819.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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