- Ethereum may be poised to move higher after dropping 30% from last month’s highs.
- Futures data shows that investors are currently bearish on the cryptocurrency, which should lend to a potential short squeeze.
Ethereum Could Soon Surge to the Upside: Futures Trend
Crucial futures data suggests that Ethereum may soon revert to the upside, not move lower.
One crypto-asset analyst recently shared the data below, which shows the positioning of ETH futures traders on Binance. The data is from HyBlock Capital, a crypto-asset derivatives data firm.
The data shows that the aggregate Ethereum trader on Binance’s futures trading platform is currently positioned extremely bearish.
For instance, the funding rate of Binance’s ETH market is currently negative, which only takes place 3-5% of the time. The rarity of the current market conditions, the trader who shared this data explains, suggests that the cryptocurrency will soon break higher.
Countintuiviely, low funding rates are often seen in the cryptocurrency market before a move higher as short positions are more easily squeezed out.
Chart of ETH's futures positioning data shared by crypto trader Byzantine General (@Byzgeneral on Twitter). Data from crypto data and analytics firm Hyblock Capital.
Technicals Agree With Optimistic Outlook
The technical trends agree with the optimistic outlook depicted by futures trends. As reported by Bitcoinist previously, one trader said on the outlook of Ethereum on a macro scale:
“Personally with so much uncertainty in the market it is very possible we see a $300 region retest, that said honestly HTF structure is looking great, lots of EMA support below us… In 2018/2019 the 55 EMA was consistently resistance, price now trending well above!”
Chart of ETH's price action over the past few years with analysis by crypto trader Crypto Cactus (@TheCryptoCactus on Twitter). Chart from TradingView.com
This was echoed by Logan Han, a prominent trader on Binance’s futures market.
Chart of ETH's price action over the past few years with analysis by crypto trader and leading Binance analyst Logan Han (@loganhan_ on Twitter). Chart from TradingView.com
Referencing the chart above, commented that he thinks the cryptocurrency is currently in a good position because it has formed a falling wedge pattern, which is suggestive of an imminent break to the upside.
Featured image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Binance Futures Trend: Ethereum May Soon Pop Higher After 30% Drop
Post source: Binance Futures Trend: Ethereum May Soon Pop Higher After 30% Drop
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from The Bitcoin News – Bitcoin and Blockchain News https://thebitcoinnews.com/binance-futures-trend-ethereum-may-soon-pop-higher-after-30-drop/
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