{"id":460244,"date":"2022-06-09T23:04:50","date_gmt":"2022-06-09T20:04:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/this-key-ethereum-price-metric-shows-eth-traders-arent-as-bearish-as-they-appear\/"},"modified":"2022-06-09T23:04:50","modified_gmt":"2022-06-09T20:04:50","slug":"this-key-ethereum-price-metric-shows-eth-traders-arent-as-bearish-as-they-appear","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/this-key-ethereum-price-metric-shows-eth-traders-arent-as-bearish-as-they-appear\/","title":{"rendered":"# This key Ethereum price metric shows ETH traders aren\u2019t as bearish as they appear"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 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-6a218d374aa0b\" 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-6a218d374aa0b\" 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-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/this-key-ethereum-price-metric-shows-eth-traders-arent-as-bearish-as-they-appear\/#%E2%80%9D_This_key_Ethereum_price_metric_shows_ETH_traders_arent_as_bearish_as_they_appear_%E2%80%9C\" >&#8221; This key Ethereum price metric shows ETH traders aren\u2019t as bearish as they appear &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/this-key-ethereum-price-metric-shows-eth-traders-arent-as-bearish-as-they-appear\/#Options_traders_are_still_extremely_risk-averse\" >Options traders are still extremely risk-averse<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/this-key-ethereum-price-metric-shows-eth-traders-arent-as-bearish-as-they-appear\/#Long-to-short_data_is_showing_a_few_positives\" >Long-to-short data is showing a few positives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/this-key-ethereum-price-metric-shows-eth-traders-arent-as-bearish-as-they-appear\/#Mixed_derivatives_data_provides_hope_for_bulls\" >Mixed derivatives data provides hope for bulls<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_This_key_Ethereum_price_metric_shows_ETH_traders_arent_as_bearish_as_they_appear_%E2%80%9C\"><\/span>&#8221; This key Ethereum price metric shows ETH traders aren\u2019t as bearish as they appear &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Ether (ETH) is down 25% in just a month and even the recent upgrade to a proof-of-stake (PoS) consensus on the Ropsten testnet failed to move the altcoin\u2019s price.\u00a0<\/p>\n<p>The merge is meant to address energy-use issues and open a path for higher transaction output, but the actual full transition for the Ethereum network is not expected until later in the year. Ethereum developer Parithosh Jayanthi also noted that some bugs on the PoS implementation emerged, but those should be fixed over the coming weeks.<\/p>\n<p>Luckily for Ethereum, two of its top competitors recently faced challenges of their own. The Solana (SOL)\u00a0network faced the fifth outage in 2022 after no new blocks were produced for four hours on June 1. Every decentralized <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>lication was halted until the validators were able to address the problem and re-sync the network.<\/p>\n<p>More recently, Binance\u2019s native BNB token dropped 7% on June 7 after <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> that the United States Securities and Exchange Commission announced that it had opened an investigation into the initial coin offer (ICO) from 2017. According to Bloomberg, at least one U.S. resident claimed to have taken part in the ICO, which could be crucial for an SEC case.<\/p>\n<p>Regulatory uncertainty could be partially responsible for Ether&#8217;s sharp correction. On June 6, Hong Kong&#8217;s Securities and Futures Commission (SFC) released a note warning about the investment risks of nonfungible tokens. The regulatory agency highlighted the sectors&#8217; opaque pricing, illiquid markets and frauds.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Options_traders_are_still_extremely_risk-averse\"><\/span>Options traders are still extremely risk-averse<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Traders should look at Ether&#8217;s derivatives markets data to understand how larger-sized traders are positioned. The 25% delta skew is a telling sign whenever whales and arbitrage desks overcharge for upside or downside protection.<\/p>\n<p>If those traders fear an Ether price crash, the skew indicator will move above 10%. On the other hand, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ized excitement reflects a negative 10% skew. That is precisely why the metric is known as the pro traders&#8217; fear and greed metric.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/1e7f3c90-d20d-4115-a6b5-77d890b23fbe.png\"><figcaption style=\"text-align: center;\"><em>Ether 30-day options 25% delta skew: Source: Laevitas.ch<\/em><\/figcaption><\/figure>\n<p>The skew indicator has been above 10% since May 22, and it recently peaked at 20% on June 3. Those levels signal extreme fear from options traders, and despite the modest improvement, the current 17% delta skew shows whales and arbitrage desks unwilling to take downside risk.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Long-to-short_data_is_showing_a_few_positives\"><\/span>Long-to-short data is showing a few positives<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The top traders&#8217; long-to-short net ratio excludes externalities that might have solely impacted the options markets. By analyzing these top clients&#8217; positions on the spot, perpetual and quarterly futures contracts, one can better understand whether professional traders are leaning bullish or bearish.<\/p>\n<p>There are occasional methodological discrepancies between different exchanges, so viewers should monitor changes instead of absolute figures.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/53a74b98-532c-468c-aaa0-5d91b489e0dd.png\"><figcaption style=\"text-align: center;\"><em>Exchanges&#8217; top traders Ether long-to-short ratio. Source: Coinglass<\/em><\/figcaption><\/figure>\n<p>Even though Ether has struggled to sustain $1,800 as a support, professional traders did not change their positions between June 5 and 9, according to the long-to-short indicator. <\/p>\n<p>Binance displayed a modest decrease in its long-to-short ratio, as the indicator moved from 0.99 to the current 0.96 in four days. Thus, those traders slightly net increased their bearish bets.<\/p>\n<p>Huobi data shows a similar pattern and the indicator moved from 1.02 to 0.98 on June 9, which was a small change favoring shorts. At OKX exchange, the metric oscillated drastically within the period but finished nearly unchanged at 1.35. <\/p>\n<p><strong>Related: <\/strong><strong><em>DeFi contagion? Analysts warn of \u2018Staked Ether\u2019 de-pegging from Ethereum by 50%<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Mixed_derivatives_data_provides_hope_for_bulls\"><\/span>Mixed derivatives data provides hope for bulls<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Overall, there hasn&#8217;t been a significant change in whales and market makers&#8217; leverage positions despite Ether&#8217;s failure to break the $1,900 resistance on June 6. <\/p>\n<p>From one side, options traders fear that a deeper Ether price correction is likely in the making, but at the same time, futures market players have no conviction to increase bearish bets.<\/p>\n<p>This reading is likely a &#8220;glass half full&#8221; scenario as the top traders&#8217; unwillingness to short below $1,900 can potentially create a support level.<\/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>\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 News 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\/this-key-ethereum-price-metric-shows-eth-traders-aren-t-as-bearish-as-they-appear\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; This key Ethereum price metric shows ETH traders aren\u2019t as bearish as they appear &#8220; Ether (ETH) is down 25% in just a month and even the recent upgrade to a proof-of-stake (PoS) consensus on the Ropsten testnet failed to move the altcoin\u2019s price.\u00a0 The merge is meant to address energy-use issues and open&#8230;<\/p>\n","protected":false},"author":1,"featured_media":460245,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvZTczYzgzYTEtMDE5MC00OTRhLTllOWItN2UyODAwOTI5MWM0LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74863,74860,75012,82402,74891,81210,74938,75846,75036,74939,92498,3123,73785],"class_list":["post-460244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-derivatives","tag-ether-price","tag-ethereum","tag-ethereum-options","tag-ethereum-price","tag-futures","tag-ico","tag-market-analysis","tag-solana","tag-leverage","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/460244","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=460244"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/460244\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/460245"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=460244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=460244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=460244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}