The Bitfinex Ethereum futures markets have closed around 300k ETHUSD long positions, which could be a hindrance to the recent rally.
In the past few days, Ethereum Long Positions have fallen by more than 300k on Bitfinex
An analyst pointed out in a CryptoQuant posting that the historical data on the long positions of ETHUSD on Bitfinex suggests the current pattern could prove bearish for its value.
Here, the relevant indicator is the current number of Ethereum long position (ETHUSD pair), currently on Bitfinex.
If the indicator’s value is high it indicates that bullish sentiment is stronger among platform investors.
On the other hand, low values could suggest whales on the exchange currently don’t believe the coin’s price is going to go up soon.
Below is a chart that displays the recent trend of the ETHUSD long positions on Bitfinex:
Source: CryptoQuant| Source: CryptoQuant
You can see that the graph shows the trends for the ETHUSD Bitfinex Longs in the last period.
As it appears, Ethereum long positions have seen a drop in value every time they were placed on the platform.
This trend can be seen immediately following drawdown or days after.
The longest gap between the price plunge and the metric’s decline in the past year was back in March, where the crypto continued to rally for 18 days before forming the local top.
Bitfinex has seen an increase in Ethereum longs over the last week. It closed around 300k of these positions.
So far the coin has risen for about 6 days. The current trend could indicate that ETH may see a local peak in the coming 12 days, if the pattern from the past is any indication.
At the time of writing, Ethereum’s price floats around $1.7k, up 8% in the last seven days. The crypto’s value has increased 40% over the last month.
The chart below shows how the currency’s price has changed over the course of five days.
It seems like the cryptocurrency's price has trended sideways in the past few days. Source: TradingView.| Source: ETHUSD on TradingView
Featured Image from Kanchanara, Unsplash.com. Charts by TradingView.com. CryptoQuant.com.