{"id":374574,"date":"2021-12-01T01:07:48","date_gmt":"2021-11-30T22:07:48","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-approaches-a-new-ath-but-derivatives-data-reflects-mixed-emotions\/"},"modified":"2021-12-01T01:07:48","modified_gmt":"2021-11-30T22:07:48","slug":"ethereum-approaches-a-new-ath-but-derivatives-data-reflects-mixed-emotions","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-approaches-a-new-ath-but-derivatives-data-reflects-mixed-emotions\/","title":{"rendered":"# Ethereum approaches a new ATH, but derivatives data reflects mixed emotions"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3667d572761\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3667d572761\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-approaches-a-new-ath-but-derivatives-data-reflects-mixed-emotions\/#Retail_traders_are_not_fully_confident\" >Retail traders are not fully confident<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-approaches-a-new-ath-but-derivatives-data-reflects-mixed-emotions\/#Top_traders_have_reduced_their_long_positions\" >Top traders have reduced their long positions<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Ethereum <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roaches a new ATH, but derivatives data reflects mixed emotions  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Today Ether (ETH) price briefly touched $4,760, exciting investors and reminding the world that the altcoin is a mere 2.2% below the $4,870 all-time high reached 20 days ago. While the spot price action might be intriguing, let\u2019s see what\u2019s happening in Ether\u2019s derivatives markets.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/0bccda9a-bff1-4bb3-9ef4-2603c0552992.png\"><figcaption style=\"text-align: center;\"><em>Ether ETH\/USD price at Bitstamp. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>While it is possible to draw a descending channel that shows support at $3,960, today&#8217;s 5.4% positive move seems decoupled from Bitcoin&#8217;s (BTC) negative performance. <\/p>\n<p>Earlier today, commodities and stocks took a hit after the U.S. Federal Reserve acknowledged that inflation is more than just a &#8220;transitory&#8221; trend and Fed chair Jerome Powell said that the bank&#8217;s relaxed money policies could end sooner than anticipated.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Retail_traders_are_not_fully_confident\"><\/span>Retail traders are not fully confident<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To understand how confident traders are about Ether&#8217;s price recovery, one should analyze the perpetual contracts futures data. This instrument is the retail traders&#8217; preferred market because its price tends to track the regular spot markets. <\/p>\n<p>In any futures contract trade, longs (buyers) and shorts (sellers) are matched at all times, but their leverage varies. Consequently, exchanges will charge a funding rate to whichever side demands more leverage, and this fee is paid to the opposing side.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/afd59e3e-838e-4a50-8872-595f5f33f9ba.png\"><figcaption style=\"text-align: center;\"><em>Ether perpetual futures 8-hour funding rate. Source: Coinglass.com<\/em><\/figcaption><\/figure>\n<p>Neutral markets tend to display a 0% to 0.03% positive funding rate which is equivalent to 0.6% per week. This indicates that longs are the ones paying and data shows retail traders have been mostly neutral since Nov. 4 and the last move above 0.07% happened on Oct. 21. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Top_traders_have_reduced_their_long_positions\"><\/span>Top traders have reduced their long positions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Exchange-provided data highlights traders&#8217; long-to-short net positioning. By analyzing every client&#8217;s position on the spot, perpetual and futures contracts, one can better understand whether professional traders are leaning bullish or bearish.<\/p>\n<p>There are occasional discrepancies in the methodologies between different exchanges, so viewers should monitor changes instead of absolute figures.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-11\/e02b0dda-fa72-4340-a5e6-bdb445255dba.png\"><figcaption style=\"text-align: center;\"><em>Exchanges top traders ETH long-to-short ratio. Source: Coinglass.com<\/em><\/figcaption><\/figure>\n<p>Despite Ether&#8217;s 17% rally over the past four days, top traders at Huobi and OKEx decreased their longs. This move was even more evident at OKEx because the indicator made a drastic move from favoring bulls by 120% on Nov. 25 to a meager 30% advantage three days later. <\/p>\n<p>Currently, data indicates that whales and arbitrage desks have reduced their long exposure, while retail traders remain suspicious of the recent bull run. <\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ethereum-approaches-a-new-ath-but-derivatives-data-reflects-mixed-emotions\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Ethereum approaches a new ATH, but derivatives data reflects mixed emotions &#8221; Today Ether (ETH) price briefly touched $4,760, exciting investors and reminding the world that the altcoin is a mere 2.2% below the $4,870 all-time high reached 20 days ago. While the spot price action might be intriguing, let\u2019s see what\u2019s happening in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":374575,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTEvM2JhNGRmZTktMWJiYS00YTZjLWFkMGYtZmRmM2Y0Nzc0MTdlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74863,75012,74891,74938,75846,74939,75592,70550,73785],"class_list":["post-374574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-cryptocurrencies","tag-derivatives","tag-ethereum","tag-ethereum-price","tag-futures","tag-market-analysis","tag-okex","tag-federal-reserve","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/374574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=374574"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/374574\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/374575"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=374574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=374574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=374574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}