Short and long positions in ETH have reached a historic high
Be aware, that there is a sharp surge of open positions in Ethereum on the Bitfinex exchange. Maximums have been reached by both long positions (bets on growth), and short positions (bets on decline). This situation occurred alongside with a crash of ETH price by more than 10%.
Despite the crash, there is still a potential for further decline. The number of long positions is about 100 thousand more than the number of short positions, which makes bulls’ positions quite vulnerable. If buyers surrender and start to close their positions massively, than the fall can significantly accelerate.
The bears managed to break the key support levels around $180-200. In order to change the situation, bulls need to close today's daily candle above $180. A large green candle will indicate a reversal, which will be accompanied by liquidation of short positions. Until this moment, it is better to refrain from active purchases.
It is worth noting that in bitcoin the opposite situation is observed. The number of short positions exceeds the number of longs by about 30%, which increases the probability of mid-term growth.
Cryptocurrencies analyst Andrew Mastykin for https://t.me/electus_en