Ethereum has extended its price recovery and regained $1.7,000, a level that has recently acted as resistance. At press time, $ETH On the daily chart, the stock rose 3.02% to trade at $1,756.
Recovery boosted $ETH It is above the MACD Signal Line Moving Average (SMA) of $1,630 and $1,671, indicating strong momentum.
Why did the Ethereum whale suffer a loss of $9 million?
As Ethereum regained $1.7,000, whales who had previously shorted the market exited to avoid increased losses and risk of liquidation. In fact, a surge in short-term liquidations wiped out $79 million of bearish positions. $ETH surpassed the level.
One whale completed a $54.1 million transaction, according to Onchain Lens $ETH short position.
Whale recognized a loss of $9.386 million and also paid $36,000 in financing fees. The exit signaled concerns about further declines in short positions.
Why are retail traders becoming more active?
Retail traders appear to be ramping up futures trading while whales exit short positions.
Average order size for Ethereum futures on CryptoQuant showed an increase in retail orders around the $1.6,000 and $1.7,000 price levels. This suggests that traders are actively opening new positions and sentiment is in the long direction.
According to CoinGlass, the long/short ratio was above 1 across exchanges.
On Binance, this ratio rose to 1.5, bringing the overall long/short ratio to 1.03. This shows that traders are expecting further upside, with long positions outweighing short positions.
Can the bulls take advantage of this move?
Ethereum’s recent recovery suggests that demand is gradually returning to the market. Momentum indicators also reflect improving conditions.
First, the daily Relative Strength Index (RSI) rose to 54, above the neutral 50 level. This suggested that buyers had the upper hand.
The MACD Signal Line Moving Average (SMA) also rose above recent support levels, reinforcing its improving momentum.
If the buyer maintains control, $ETH You can get back $1.8,000 before attempting a move towards $2,000. However, spot sales still had risks.
Onchain Lens reported that Chun Wang deposited 9,876 $ETHthe equivalent of $17.02 million flowed into Binance. If large forex inflows continue, selling pressure will increase and Ethereum could be sent ($ETH) will set you back towards $1,640.
Final summary
- Ethereum ($ETH) regained the $1.7,000 resistance level and rose 3.02% as momentum strengthened.
- Whale earned $54.1 million $ETH The short position resulted in a loss of $9,386,000 and a funding fee of $36,000.
