- Crypto traders seem to be extremely optimistic about Ethereum’s short-term price, judging from Bitfinex data.
- The data shows that the number of long positions on Ethereum is higher than ever.
- Many analysts disagree, claiming that technical indicators announce a major drop in the near future.
The past several weeks have brought a lot of focus on Bitcoin, so it is not that surprising that Ethereum underperformed when compared to the world’s largest coin. However, according to recent data, investors seem to be rather optimistic regarding the largest altcoin.
New data from Bitfinex, specifically, indicates that traders expect Ethereum’s prices to grow. At least, that is what can be concluded from the fact that many of them have entered long positions for the coin. While this might sound like good news at first, analysts fear that the optimism might end rather badly.
Similar predictions exist for the price of Bitcoin, which historically used to sink after halving. You can learn more about BTC trading by visiting our dedicated page.
Long positions on Bitfinex hit a new record
In essence, Bitfinex data shows that traders are very optimistic about Ethereum. In fact, they seem to be more optimistic than ever, although the timing is far from perfect, as there bearish technical indicators for the leading cryptocurrency promise another market crash.
But, traders seem to either be unaware of it, or are ignoring the signs. The data shared by Josh Olszewicz of the Brave New Coin shows that there is currently a record high of open long positions on ETH on Bitfinex. The number of contracts skyrocketed to 1.6 million, which is three times the amount of open long positions from the beginning of the year.
Meanwhile, it is nine times the amount of open long positions during the height of the bull market in the early days of 2018.
Ethereum’s longs also reached the new high of the notional value, at $308 million. Provided that there is no leverage involved, that would mean that 1.4% of all Ethereum is currently longed on this single exchange.
Analysts offer a grim alternative
But, while traders are optimistic, analysts are not. Looking at technical indicators, they are warning that ETH is about to see a correction. One analyst even predicted an ETH rally to $210, which would be followed by a major crash to $150.
And that is not even the worst prediction, as many were much more skeptical of the coin’s near future. One trader, who previously predicted XRP’s crash months in advance, now suggests that ETH could sink to $50.
These predictions are rather bearish, and some are even worse than the drops seen in 2018. But, you not everyone agrees with them, and the unpredictable nature of crypto leaves all possibilities open. You should read more about how to trade Ethereum and form your own opinion, although remember to keep what experts say in mind.