Based on the "smart trader" data for ETHUSDT, shorting is prioritized in the short term.

1. What does the trader data say?

- Long/Short ratio is only 8.69%: This means 91.31% of the funds are betting on the short side. This is a strong imbalance towards one side.

- The Short side is raking it in: 1280 Short traders holding 1.67B USDT, with unrealized gains of +115M USDT. 83.82% of them are in profit.

- The Long side is at the peak: 596 Long traders holding 145M USDT, facing a loss of -21.37M USDT. Average entry price is 2284.31 USDT, and now ETH is down to 1991.46 USDT.

When 80%+ of traders are in profit, they often take profit and the price usually makes a slight rebound. But if ETH breaks support, these Long positions get liquidated, pushing the price down further.

2. Current price and risks

- ETH 1991.46 USDT, down -4.52%: Currently in a psychological support zone of 2000.

- Price into the average Short at 2128.78: They entered $137 higher than the current price. If ETH rebounds to 2080-2100, the Short side will close positions to take profit, creating buying pressure.

- Funding near 0: 0.0021%/4h. The market is balanced; no fee pressure is weighing on either side.

3. Should we go Long or Short?

Short-term 1-2 days: Short scalping has an advantage.

Reason:

1. The trend is bearish; if ETH breaks below 2000, it can easily move to 1920-1950.

2. 91% of traders are Short; the crowd is often right during a strong downtrend.

3. The Long side is in heavy losses; if it breaks below 1980, mass margin calls could follow.

Short scalping setup:

- Entry: 1995-2005 if it retraces up to retest

- SL: 2020 above a minor resistance

- TP: 1950 TP1, 1920 TP2

A Long setup only when:

ETH closes a 4h candle above 2020 + volume increases. Only then would there be a chance to rebound to 2080-2100 to retest the average entry price of the Short side. Going Long below 2000 right now is catching a falling knife.

4. Warning

This data shows the crowd is Short. The crypto market often "goes against the crowd" in extreme zones. If ETH holds 1980 and bounces, the short squeeze could be very strong because 1.67B USDT worth of Shorts is hanging there.

Watch the wave here #ETH