Ethereum price extended its recovery and recently reclaimed $1.7K, which served as resistance. At the time of writing, ETH was trading at $1,756, up 3.02% on the daily chart.
The recovery pushed ETH above the MACD Signal Line Moving Averages (SMA) at $1,630 and $1,671, signaling stronger momentum.
Why did the Ethereum whale suffer a $9 million loss?
As Ethereum reclaimed $1.7K, whales who had previously shorted the market exited to avoid mounting losses and the risk of liquidation. In fact, short liquidations increased and $79 million in bearish positions were wiped out after ETH broke through this level.
Accordingly Lens On ChainA whale closed a $54.1 million ETH open position.
Whale lost $9.386 million and also paid a Financing Fee of $36,000. The breakout signaled further downside concerns for the short position.
Why are retail traders becoming more active?
Retail traders were seen increasing their Futures activity as Whales exited their short positions.
CryptoQuant’s Ethereum Futures Average Order Size showed that Retail Orders increased at the $1.6K and $1.7K price levels. This showed that investors were actively opening new positions and sentiment favored long positions.
According to CoinGlass, the Long/Short Ratio has risen above 1 on exchanges.
On Binance, the ratio increased to 1.5, while the overall Long/Short Ratio reached 1.03. This showed that long positions outnumbered short positions as traders expected further upside.
Could bulls benefit from the move?
Ethereum’s recent recovery has shown that demand is gradually returning to the market. Momentum indicators also reflected improving conditions.
For starters, the daily Relative Strength Index (RSI) climbed to 54, moving above the neutral 50 level. This showed that buyers were gaining the upper hand.
The MACD Signal Line Moving Averages (SMAs) also remained above recent support levels, reinforcing the increasing momentum.
If buyers maintain control, ETH could reclaim $1.8K before making a move towards $2K. However, spot sales continued to be a risk.
Onchain Lens, Chun Wang He deposited 9,876 ETH worth $17.02 million on Binance. If major stock market inflows continue, selling pressure may increase and Ethereum (ETH) It returned to $1,640.
Final Summary
- Ethereum (ETH) reclaimed the $1.7K resistance level, gaining 3.02% as momentum strengthens.
- A whale closed a $54.1 million ETH open position, losing $9.386 million and paying a Funding Fee of $36,000.
