Ethereum (ETH) continued to hover around $1.8 thousand. The altcoin showed relative strength after successfully recovering from $1800, rising to $1876.
As of this writing, Ethereum was trading around $1866, up 1.7% on the daily charts. While ETH was hovering around $1.8 thousand, whales became optimistic and opened long positions.
Whale abandons BTC for Ethereum long
Accordingly lookonchainThe two newly created wallets sold 72 Bitcoin (BTC) worth $4.66 million and then jumped to Ethereum.
After dumping BTC, the trader opened a 20x long position on 12,000 ETH, worth approximately $22.4 million. With ETH remaining above the entry price so far, the whale has already raised $275k, spending $5.8k in funding fees.
When the trader dumps BTC ETHWhale saw this as a better alternative and a more promising bet. Interestingly, this whale was not an isolated case as buyers made a strong comeback in the market.
The Derivatives Taker Call-Ask Ratio climbed, regaining 1 point and has held that level for two consecutive days so far. It shows that more buy orders were executed on the derivatives side at 1.13.
As a result, a significant amount of capital has flowed into Futures positions. While $3.67 billion flowed into Futures positions in the past 24 hours, $3.32 million went out.
Therefore, Futures Net Flow increased 213% to $351.1 million, indicating more capital flowing into new positions.
More importantly, most of these funds appear to be flowing into opening long positions. The Long/Short Ratio remained above 2 to 1 on average across Binance.
This means more traders are bullish and expect more gains on the ETH price charts.
Could this bullish trend help ETH?
Ethereum buyers have begun to regain control of the market, especially in derivatives. In fact, the altcoin’s Real Strength Index followed an upward trend and rose to 15 at the time of writing.
When the TSI rises, it indicates that bullish momentum is strengthening as buyers slowly reclaim the market. Most often when this indicator rises, it indicates that the uptrend is strengthening and will likely continue.
In fact, the Momentum Adjusted Moving Average (MaMa) confirms the strength of this trend. ETH is above both the MaMa at $1848 and the Positive Feedback Band at $1875.
Under these conditions, if buyers take the derivative side, the altcoin will return to $1900 and extend the uptrend. To maintain this bullish view, Ethereum needs to stay above MaMa’s Positive Feedback Band at $1875.
Final Summary
- A. After selling 72 BTC, the trader opened a 20x long position on 12,000 ETH, worth approximately $22.4 million.
- Ethereum is showing relative strength as buyers see the daily close back above $1.8K.
