Posted 2 years ago | by Ben Armstrong
Long ETH Positions hit a New All-Time High
Investors seem to have a positive view of Ethereum, which may create a sudden decline through a long squeeze. Over the past few days, ETH took a 10% nosedive that its price drop from $170 to $152. However, data shows that retail investors remain optimistic.
Long ETH positions on Bitfinex are over 330,000 new positions were added representing a 30% increase today since the March 12 crash. The number of ETH long positions on the Hong Kong-based cryptocurrency exchange to rose to over 1.39 million, a new all-time high.
With the global economic conditions stemming from coronavirus, it is quite surprising in the number of investors betting to the upside. Normally, traders will sell their holdings to prevent bigger losses as the financial turmoil deepens.
Is ETH Going to Rally From Here?
Although traders are going long to try profit from the opportunities that are presented when fear reigns the market, ETH could have more consolidation ahead before resumes its uptrend. ETH may continue to bounce around its current trading range, before putting in a solid bottom from which it can rally.
The TD sequential indicator recently flashed a sell signal in the form of a green nine candlestick on ETH’s 1-day chart. Now that Ethereum fell to the 23.6% Fibonacci retracement level, it followed by a downswing to the 38.2% or 50% Fib as closing below this critical area of support.
The number of addresses with zero balance has outpaced the number of new addresses being created daily on the ETH blockchain. It is worth highlighting that only a daily candlestick close below the 23.6% Fib will increase the odds for a long squeeze.
Higher Prices are Likely in Long-Term
While there is still have no idea why long ETH positions in Bitfinex are surging, the different technical and fundamental metrics previously explained indicate that investors need to be aware of the probability of a further downturn.
There are also a lot of risks that are being created as a result of the Federal Reserve's money printing madness. The affect that this money will have on the global pandemic is questionable, but that cash could flow into the crypto market with a bang.
As always, the bigger question over the longer term is whether or not people adopt BTC and ETH as a means of savings and payment. Despite their capability to be used as an alternative monetary system, cryptos still aren't widely used by the general public.