$ETH The incoming cash flows are returning, leverage is increasing, and short sellers are facing losses
The most notable change is visible in the spot markets. ETH recorded a net influx of $58.10 million on December 3, its strongest positive result in weeks. This influx breaks a month-long distribution period and follows a pattern observed during previous trend transitions: significant inflows during the early phases of recovery rather than after breakouts. If the next sessions continue in the green, traders will view it as an early accumulation by major players rather than an opportunistic covering of short positions.
Derivative markets are reinforcing the trend towards improvement, but they also introduce risks. Open interest has increased by 10.84% to reach $38.34 billion, while options interest and volume continue to rise. These increases reflect a deliberate repositioning and indicate that institutions and high-volume traders expect increased volatility.
The positioning itself reflects a bullish crowding. Long/short ratios are 1.62 on Binance, 1.42 on OKX, and 2.01 among the top accounts on Binance. This asymmetry reveals a market that heavily favors a continuation of the rise. This positioning is favorable if ETH breaks through resistance, but it amplifies the downside risk if the move fails.
Liquidation data illustrates how short position covering has fueled the rally. Over the last 12 hours, short positions have absorbed about $19.4 million in liquidations, compared to only $4.47 million for long positions. Forced covering creates momentum, but it is not reliable if it does not transform into organic buying.
