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During recent trading activity on the crypto exchange Binance, 72% of ETHUSDT traders took long positions. This interesting sentiment is revealed through the trading analysis platform CoinGlass. This increase in the long position is more remarkable because it occurs after a week Ethereum is trending downward.
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The strong tilt toward long positions suggests that most traders are confident that Ethereum’s price will recover in the coming week. On the other hand, 27.97% of Binance traders are still short ETHUSDT.
ETHUSDT long positions rise: what’s behind it?
According to data from CoinGlassETHUSDT traders are currently leaning towards a bullish price for Ethereum in the coming weeks. Notably, the data is mainly clouded by ETHUSDT’s perpetual traders.
The data shows that the number of traders currently opening long ETH positions on Binance significantly exceeds the number of traders opening short positions by a ratio of 2.58, highlighting the bullish sentiment among some cohorts of traders.
At this point, it is unclear why the majority of Binance perpetual traders are going long on Ethereum, beyond just a general bullish sentiment over the longer term, as there are no expiration dates on their positions. 72.03% have opened long positions in ETHUSDT in the last 24 hours.
Meanwhile, 27.97% of ETHUSDT traders remain cautious and have taken short positions within the same time frame. These traders may be skeptical about Ethereum’s long-term price recovery. In comparison, 58.15% of BTCUSDT traders are going long, while 41.85% have opened short positions in the last 24 hours.
However, if we look beyond Binance and into the broader crypto market, the Sentiment seems less bullish. Data from aggregated crypto exchanges shows that spot traders are taking a more neutral stance on Ethereum, and that market participants are evenly split between buyers and sellers. Notably, the Exchanges ETH Long/Short Ratio shows that 49.05% of market participants are buyers while 50.95% are sellers in the last 24 hours.
What’s Next for the Ethereum Price?
While the long positions on Binance indicate confidence in a rally, the sentiment among spot traders is neutral points to a more cautious outlook. At the time of writing, Ethereum is trading at $2,420. According to data from Coinmarketcap, the altcoin is currently down 8.38% over the past 24 hours.
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Technical analysis shows that Ethereum is retesting a lower trend line and is about to break down. If the bulls cannot hold this trendline, it could lead to a further decline of 10.7% towards $2,150. On the upside, a recovery on this trendline could push the crypto higher and retest $2,700 as October plays out.
Featured image from Pexels, chart from TradingView
Credit : www.newsbtc.com
