- The largest smart contract platform, according to data from crypto analytics firm Santiment Ethereum (ETH)signals a potential bullish amid the current bear market.
The market intelligence platform says traders are shorting Ethereum at the highest rate since June last year. states.
The firm says price increases have historically been common in such market conditions.
“Ethereum distrust is strong from traders, especially during a volatile trading week. Majority exchanges shorted at the highest rate since June 2021. Historically, price increases have been more common in these conditions.”
According to Santiment, traders are also aggressively investing against Bitcoin (BTC).
“Traders continue to short sell when prices experience a significant drop in price. According to the BTC average funding rate across Binance, BitMEX, DYDX and FTX, the response to Friday’s drop was the most aggressive towards the markets since May.”
The crypto analytics firm states that Bitcoin continues to move away from exchanges despite price volatility over the past few years. The stock market supply of king crypto recently hit its lowest level since the end of 2018.
“During downtrends like Crypto’s 2022, it’s common to see long-term holders make up a larger percentage of the total supply.”
Ethereum, whose much-anticipated Merge upgrade is getting closer and closer, is trading at $1,570 at the time of writing. The second-ranked cryptocurrency by market cap has increased by more than 1% in the last 24 hours, while Bitcoin (BTC) is changing hands at $ 20,206 with an increase of about 1% in the last day.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.