- Most open positions are wagers that ETH will appreciate in value despite the market’s decline.
Since exchange traded funds (ETFs) became live, the majority of traders on Ethereum, according to derivatives data, have been long on the cryptocurrency.
Over 70% of ETH holdings currently bet that the price will rise further, as the long vs short ratio has been steadily rising over the past week, according to Coinalyze.
The local high of 2.78 achieved on May 10 is still not reached by the long-to-short ratio of 2.33, which is the highest since July 3.
However, throughout the past week, BTC’s long-to-short ratio has been declining, which is unusual because ETH’s and BTC’s ratios usually move in tandem.
The diverging data suggests that traders are positioning themselves based on the hypothesis that Ethereum ETFs could propel ETH’s performance above that of Bitcoin.
Ethereum has lost 1.1% over the past day despite bullish demand and robust ETF inflows; in contrast, BTC has lost 1.8% and Solana has lost 3.9%.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
