Posted 1 year 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.

chart 2 Long ETH Positions hit a New All-Time High

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.

chart 1 1 Long ETH Positions hit a New All-Time High

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.

About Ben Armstrong

ef4f73e9ddeb61becab57469962fa946?s=90&d=blank&r=g Long ETH Positions hit a New All-Time HighBen Armstrong is a YouTuber, podcaster, crypto enthusiast, & creator of BitBoyCrypto.com. Better known as BitBoy Crypto, he works hard to educate and inform the crypto community.

Ben has been involved with the world of cryptocurrency since 2012 when he first invested in Bitcoin. He used Charlie Shrem's BitInstant & lost Bitcoin in the Mt. Gox hack.

In 2018, Ben decided to go "full-time crypto" and focus all of his time and energy into expanding the reach of crypto.

If you have any questions or comments please feel free to email him at BitBoy@BitBoyCrypto.com or contact him on Twitter @BitBoy_Crypto.