{"id":388313,"date":"2022-01-01T14:05:00","date_gmt":"2022-01-01T11:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ether-drops-below-3800-but-traders-are-unwilling-to-short-at-current-levels\/"},"modified":"2022-01-01T14:05:00","modified_gmt":"2022-01-01T11:05:00","slug":"ether-drops-below-3800-but-traders-are-unwilling-to-short-at-current-levels","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ether-drops-below-3800-but-traders-are-unwilling-to-short-at-current-levels\/","title":{"rendered":"# Ether drops below $3,800, but traders are unwilling to short at current levels"},"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-6a35efdf5f895\" 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-6a35efdf5f895\" 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\/ether-drops-below-3800-but-traders-are-unwilling-to-short-at-current-levels\/#Derivatives_markets_do_not_reflect_panic_selling\" >Derivatives markets do not reflect panic selling<\/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\/ether-drops-below-3800-but-traders-are-unwilling-to-short-at-current-levels\/#Top_traders_are_increasing_their_bullish_bets\" >Top traders are increasing their bullish bets<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Ether drops below $3,800, but traders are unwilling to short at current levels <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Even though Ether (ETH) reached a $4,870 all-time high on Nov. 10, bulls have little reason to celebrate. The 290% gains year-to-date have been overshadowed by Dec.&#8217;s 18% price drop. Still, Ethereum&#8217;s network value locked in smart contracts (TVL) increased nine-fold to $155 billion.<\/p>\n<p>Looking at the past couple of months&#8217; price performance chart doesn&#8217;t really tell the whole story, and Ether&#8217;s current $450 billion market capitalization makes it one of the world&#8217;s top 20 tradable assets, right behind the two-century-old Johnson &amp; Johnson conglomerate.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/df075c97-cbfe-4cd5-b3fa-2ab435edf727.png\"><figcaption style=\"text-align: center;\"><em>Ether\/USD price at FTX. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>2021 should be remembered by the decentralized exchanges&#8217; sheer growth, whose daily volume reached $3 billion, a 340% growth versus the last quarter of 2020. Still, crypto traders are notoriously short-sighted, accentuating the impact of the ongoing downtrend channel.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Derivatives_markets_do_not_reflect_panic_selling\"><\/span>Derivatives markets do not reflect panic selling<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To understand whether bearishness has been instilled, one must analyze the futures&#8217; funding rate. Perpetual contracts, also known as inverse swaps, have an embedded rate usually charged every eight hours. Those measures are established to avoid exchange risk imbalances. A positive funding rate indicates that longs (buyers) demand more leverage.<\/p>\n<p>However, the opposite situation occurs when shorts (sellers) require additional leverage, and this causes the funding rate to turn negative.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/a91666c7-f0b8-4278-81eb-503ad4f2bafd.png\"><figcaption style=\"text-align: center;\"><em>Ether perpetual futures 8-hour funding rate. Source: Coinglass.com<\/em><\/figcaption><\/figure>\n<p>As depicted above, the eight-hour fee has been ranging near zero in December, indicating a balanced leverage demand from buyers and sellers. Had there been some panic moments, it would have been reflected on such derivatives indicators.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Top_traders_are_increasing_their_bullish_bets\"><\/span>Top traders are increasing their bullish bets<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\/2021-12\/4247dc80-df94-4b47-bbc5-902a6395fd08.png\"><figcaption style=\"text-align: center;\"><em>Exchanges top traders Bitcoin long-to-short ratio. Source: Coinglass<\/em><\/figcaption><\/figure>\n<p>Despite Ether&#8217;s 9% correction since Dec. 24, top traders on Binance, Huobi and OKEx have increased their leverage longs. To be more precise, Binance was the only exchange facing a modest reduction in the top traders&#8217; long-to-short ratio. The figure moved from 0.98 to 0.92. However, this impact was more than compensated by OKEx traders increasing their bullish bets from 1.67 to 3.20 in one week.<\/p>\n<p>Currently, there is hardly a sense of bearishness present in the market. According to the data, pro traders are buying the dip while retail investors&#8217; net demand for shorts (sell) hardly changed throughout the past month. Of course, none of that can predict whenever Ether will flip the current descending channel, but one might infer that there&#8217;s little interest in betting on the downside from here.<\/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<\/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\/ether-drops-below-3-800-but-traders-are-unwilling-to-short-at-current-levels\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Ether drops below $3,800, but traders are unwilling to short at current levels &#8221; Even though Ether (ETH) reached a $4,870 all-time high on Nov. 10, bulls have little reason to celebrate. The 290% gains year-to-date have been overshadowed by Dec.&#8217;s 18% price drop. Still, Ethereum&#8217;s network value locked in smart contracts (TVL) increased&#8230;<\/p>\n","protected":false},"author":1,"featured_media":388314,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvMzgwMjU5MjctYTBhNC00ZDJlLWI4M2MtMTQ2NWMzMGI3ZjU0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75012,74891,75846,75591,75592,73785],"class_list":["post-388313","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-derivatives","tag-ethereum","tag-futures","tag-huobi","tag-okex","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/388313","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=388313"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/388313\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/388314"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=388313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=388313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=388313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}