The post Speculative traders dominate Ethereum market – Bullish or bearish for ETH? appeared on BitcoinEthereumNews.com.

Ethereum reserves on derivative exchanges have surged to the highest level in more than a year as speculative activity rises. Rising open interest also suggests traders are increasingly betting on Ethereum’s future price moves. Ethereum [ETH] has struggled to keep up with the performance of Bitcoin [BTC] and other top altcoins because, in the last seven days, it has dropped by 6% to trade at $3,123 at press time.  Ethereum’s failure to break from bearish trends stems from the lack of adequate demand to counter selling pressure. As AMBCrypto reported, sellers currently have the upper hand, which has prevented a breakout above resistance.  However, a look at the derivatives market shows a divergence. Speculative activity around ETH is at its highest level in months, indicating that derivative traders are positioning themselves for future price movements.  ETH reserves on derivative exchanges hit multi-month highs  Data from CryptoQuant highlights the rising speculative interest around Ethereum. ETH reserves on derivative exchanges stood at 11.28M at press time, marking the highest level in over a year.  Source: CryptoQuant Higher reserves on derivative exchanges show that speculative traders are participating in leveraged trading around ETH. This shows that traders are placing bets on Ethereum’s future price movements.  The rising speculative activity is also seen in the derivative exchange supply ratio, which stood at 0.09 at press time, indicating that 9% of Ethereum’s total circulating supply is held in derivative exchanges. Source: CryptoQuant This metric is at its highest level since April, representing a shift in market activity where derivative trading activity is playing a pivotal role in influencing Ethereum’s short-term price trends.  A rise in leveraged trading can cause price fluctuations due to forced liquidations if ETH makes unexpected price movements. Moreover, it could reinforce the bullish or bearish trend depending on how market participants…

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Filed under: News - @ November 20, 2024 7:12 am