What Are Ethereum Derivatives Traders Up to After ETH Decline? | Airdrop Alert Pro

Ethereum (ETH) derivatives traders responded to the altcoin’s failure to sustain $3,500 levels by increasing short positions. The surge in bearish bets suggests that most traders expect ETH price to fall further.

However, do other indicators match this sentiment? this On-chain analysis Explore whether these traders made the right call, or if the data hints at a potential rally.

Ethereum bears outnumber bulls on profit-taking

At the time of writing, the liquidation chart shows that Ethereum derivatives traders have opened positions short position A total of $918 million has been gained since yesterday’s cryptocurrency price decline.

In trading, going long or short represents the trader’s expectation of price movement. Opening a long position indicates that the trader believes the price will rise. On the other hand, shorting indicates that they expect the price to fall.

Currently, ETH long positions are worth approximately $218 million, highlighting the shorts has significantly exceeded $700 million in bullish exposure. However, it is worth noting that if The price of Ethereum rises to At US$3,700, most of these highly leveraged positions may face liquidation.

However, data from Glassnode suggests these traders may not face liquidation unless there is a significant rebound. This is mainly due to an increase in realized profits, which shows that traders have locking Proceeds are obtained by selling or transferring an asset for a higher price.

As of press time, Ethereum’s realized profits have surged to $659.22 million, suggesting that most shorts have taken advantage of the price action and may be less vulnerable to liquidation in the short term.

ETH Price Prediction: Bearish

From November 16th, ETH price has been trading Within the ascending channel. An ascending channel is a chart pattern formed by two ascending trend lines, one drawn above the price (resistance) and the other below the price (support).

This pattern indicates that the price is moving higher within the stated range. Support lines show where prices tend to rebound higher, while resistance lines mark where prices come under selling pressure.

As shown below, the ETH price is $3,314, Has fallen below support level Wire. If selling pressure intensifies, the cryptocurrency’s value could fall to $3,033.

However, Ethereum derivatives traders need to be careful. This may not happen if the altcoin fails to fall below $3,220. instead, Value may rise to $3,547 and could climb to $4,000.