Ether price is still at risk of falling below $1,000, but data points to traders opening new long positions.
Ether
ETH

to mark
$1,190

the price could not close above $1400 for the last 29 days and traded in a relatively tight range of $150. At the moment, the support at $1,250 and the resistance at $1,400 seem difficult to break, but two months ago Ether was trading at $2,000. Ether’s current price range simply reflects how volatile cryptocurrencies can be.

On the one hand, investors are calm as Ether is 50% above the intraday low of $880 on June 18. But the price is still 65% year to date despite the most exciting update in the seven-year history of the network.

More importantly, the biggest competitor of Ethereum, BNB Chain, a cross-chain security exploit on October 6. The exploitation of $ 568 million BNB Smart Chain temporarily suspended all transactions in the network, which has $ 5.4 billion in smart contract deposits.

Ether is underperforming competing smart contract network coins such as Binance Chain’s BNB
bnb

to mark
$346

, Cardano ADA (ADA) and Solana
SUN

to mark
$15

of 14% since September, although its TVL and ETH terms increased by 9% during the period. This suggests that Ethereum network issues, such as $3 average transaction fees, have affected the price of ETH.

Ether vs MATIC, SOL, BNB: Source: TradingView
Traders should look at data from the ether derivatives markets to understand how whales and market makers are positioned.

Options traders remain moderately risk averse
The 25% delta assumption is a terrible sign when professional traders overcharge for upside or downside protection. For example, if traders expect an Ether price drop, the options market bias indicator would move above 12%. On the other hand, widespread enthusiasm reflects a negative bias of 12%.

Ether 60-Day Options 25% Delta Bias: Source: Laevitas
In simple terms, the higher the index, the less inclined traders are to offer downside risk protection. The indicator has been signaling fear since September 19, when it last held a value below 10%. That day marks the temporary bottom of a 28% weekly correction, as support at $1,250 was strengthened after such a test.

Long to short data shows traders adding longs
The net long to short ratio of the major players excludes externalities that only affected the options markets. By adding cash positions, perpetual and quarterly futures contracts, you can better understand whether professional traders are bullish or bearish.

There are occasional methodological differences between different exchanges, so viewers should monitor changes rather than absolute numbers.

Large traders of Ether Long-to-Short Ratio exchange. Source: Coinglass
Binance showed a modest increase in its long-to-short ratio between October 13 and October 17, as the indicator went from 1.04 to 1.07 in those four days. Therefore, these traders slightly increased their bullish bets.

Huobi data shows a stable pattern as the long-to-short indicator has remained close to 0.98 all along. Finally, on the OKX exchange, the metric fell to 0.72 on October 13th, strongly favoring shorts only to rally to the current 1.00.

On average, based on the long-to-short gauge, the top traders on the three exchanges have built long positions since the $1,200 support test on October 13.

Bias and Leverage Critical to Hold $1,250 Support
There was no significant improvement in professional traders’ derivatives positions despite ether gaining 12% from the October 13 crash to $1,185. Additionally, option traders fear that a move below $1,250 remains feasible if the bias indicator remains above the 10% threshold.

If these whales and market traders had strong beliefs of a strong price correction, this would have been reflected in the long to short ratio of the major traders.

Investors should monitor both metrics closely. The 25% delta bias should remain at 18%, and the long to short ratio above 0.80 to maintain the strength of the support at $1,250. These indicators are

Source: CoinTelegraph

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