The proportion of small retail investors betting against Ethereum [ETH] has been steadily increasing, while the number of those wagering for its rise is diminishing. The Short Ratio has surpassed 30%, while the Long Ratio has fallen below 75%.
This change is accompanied by a rise in Open Interest (OI), indicating that small investors are placing their bets against the future of Ethereum.
At the current time, the price of ETH has climbed above $2,775. However, if this downbeat sentiment persists, a retracement towards $2,700 could be on the horizon.
Conversely, if OI continues to climb and shorts face pressure, ETH might surpass $2,825 and set its sights on higher targets. The reduction in long positions might signify concerns about Ethereum’s short-term growth potential.
If this pattern persists, ETH could challenge lower support levels. On the contrary, if investor sentiment changes and long positions start to rise, we may witness a bounce towards $2,800 or even higher.
Binance Continues Significant ETH Offloading
The sentiment of small investors is mirrored by Binance, which has been shifting notable quantities of Ethereum to centralized exchanges and market creators. The transferred amounts range from 1.003K ETH valued at $2.79M to 1.52K ETH worth $4.25M.
This elevated level of activity, including substantial inflows to market creators and exchanges, may suggest that Binance is enhancing liquidity or potentially reducing its ETH exposure based on market circumstances.
The potential repercussions on Ethereum’s price are mixed.
On one hand, if these transfers serve to meet rising exchange demands or for market-creating reasons, they could help stabilize or even elevate the ETH price due to increased liquidity and trading activity.
If this represents Binance reducing its holdings, it might result in a price decline due to an influx of supply into the market.
This implies that additional sell-side pressure from exchanges could either confirm a bearish trend or, if met with adequate buying demand, lead to a bullish turnaround.
MACD Affirms Bullish Cross
However, Ethereum’s price movement has flashed a bullish signal, with the MACD crossing above its signal line.
This bullish intersection, paired with stabilization near the crucial support level around $2,650 post the Bybit hack, hints at the possibility of a price surge.
The immediate target post this bullish signal could be the recent resistance at $3,000. If Ethereum breaches this obstacle, the subsequent critical level might be approximately $4,000 and beyond.
Conversely, if the bullish momentum weakens and fails to hold, ETH might revisit the $2,650 support level.
A breach beneath this point could trigger further declines, with the subsequent notable support lying at $2,490.