Ethereum extended its uptrend, touching a local high of $2385, before slightly retracing to $2317 as of this writing.
The altcoin’s continued rise led to massive liquidations of futures positions. In fact, over $136 million worth of short positions were liquidated, while $39 million worth of long positions were liquidated.
Source: CoinGlass
Amid the rising liquidation rates, market participation, especially from whales, has skyrocketed on the futures market.
Ethereum whales in the futures see heightened volatility.
With Ethereum [ETH] seeing significant upside volatility, some whales have seen massive profits while shorts have seen losses mount.
According to Lookonchain, a Matrixport-linked whale closed a 40,000 ETH ($94.16 million) long position. In doing so, the whale realized a $14.47 million profit.
Even after the sale, the whale still holds a long position of 80,000 ETH, valued at $188.4 million. While longs have seen their profit margins rise, shorts are counting losses.
Lookonchain reported that while Pension usdt.eth has a 86% win rate, the whale shorts are taking losses. The 3x-leveraged short position on 10,000 ETH, valued at $23.6 million, sat at a $3.46 million loss.
With shorts taking losses, while longs recording profits, market participants have turned to long positions.
Source: CoinGlass
According to CoinGlass data, Derivatives Volume rose 60% to $86.7 billion while Open Interest [OI] jumped 4.4% to $33.2 billion. This showed increased participation and capital flows into futures.
Meanwhile, the Long/Short Ratio rose to 1.04, with Binance Top Traders leading with 1.28. A ratio above 1 indicates increased demand for long positions, reflecting market bullishness.
What’s next for ETH?
Ethereum’s upside momentum strengthened further as investors covered their short positions to avoid liquidations. As such, buyers took control of the market, boosting ETH to flip above its short-term moving averages, as evidenced by the MACD-SMA.
At the same time, the positive index of the Directional Movement Index rose to 35, while the negative index fell to 12. Likewise, the ADX smoothed remained below 20 at 17.
Source: TradingView
With these movement indicators set in this manner, the market showed strong upside momentum, with buyers enjoying significant market control.
Therefore, if current market demand holds, ETH could see further gains, targeting a move above $2.5k. However, SMA indicated that the current upside is likely a relief rally rather than a confirmed bull trend.
For trend confirmation, ETH needs to flip its long-term MAs. Thus, if this attempt fails and leverage is reduced again, ETH could drop towards $2069.
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