Ethereum (ETH) continued to move around $1.8K. After successfully rebounding from $1,800, the altcoin showed relative strength, rising to $1,876.
As of this writing, Ethereum is trading around $1,866, up a slight 1.7% on the daily charts. As ETH was hovering around $1.8K, whales became bullish and opened long positions.
Whale is selling BTC for Ethereum in the long term
according to LoconchineTwo newly created wallets sold 72 Bitcoin (BTC) worth $4.66 million and then jumped into Ethereum.
After dumping Bitcoin, the trader opened a long position of 20 times 12,000 ETH, worth approximately $22.4 million. So far, with ETH holding above the entry price, the whale has already risen by $275K, having spent $5.8K on funding fees.
With the trader getting rid of BTC EthereumPisces saw it as a better alternative and a more promising bet. Interestingly, this whale was not an isolated case, as buyers came back in force into the market.
The rate of buying and selling derivatives increased, regained the first mark, and has maintained this level so far for two consecutive days. At 1.13, this indicates that more buy orders have been executed on the derivatives side.
As a result, significant capital flowed into futures positions. Over the past 24 hours, $3.67 billion flowed into futures positions, while $3.32 million flowed out.
Because of this, Netflow futures rose 213% to $351.1 million, indicating more capital flowing into new positions.
More importantly, it appears that most of this money has flowed into long positions. The long/short ratio remained above 1, with an average of 2 across Binance.
This means that more traders were bullish and anticipating more gains on the ETH price charts.
Could this bullish shift help ETH?
Ethereum buyers, especially in derivatives, are beginning to regain control of the market. In fact, the altcoin’s True Strength Index has held an upward trajectory, rising to 15 at press time.
When the TSI rises, it indicates that bullish momentum is strengthening, with buyers gradually reclaiming the market. Often, when this indicator rises, it indicates that an uptrend is strengthening and is likely to continue.
In fact, the Momentum Adjusted Moving Average (MaMa) confirms the strength of this trend. ETH is above MaMa at $1848 and the positive feedback range at $1875.
Under these conditions, if buyers hold the derivatives side, the altcoin will flip the $1,900 level and extend the uptrend. To maintain this bullish outlook, Ethereum must remain above MaMa’s positive feedback range at $1,875.
Final summary
- A The trader opened a long position of 20 times 12,000 ETH, worth approximately $22.4 million, after selling 72 BTC.
- Ethereum is showing relative strength, with buyers eyeing a daily close above $1.8K again.
