Ether (ETH) rejected the $2,000 resistance on August 14, but the sharp 82.8% rise since the rising wedge formation began on July 13 actually looks like a win for the bulls. Undoubtedly, the “Ultrasonic Money” dream will come closer as the community expects the Merge transaction to be a Proof of Stake (PoS) consensus community on September 16th.
Some critics point out that the transition away from proof-of-work (PoW) mining has been delayed for years and that the merge itself does not solve the scalability problem. Community migration to parallel processing (sharding) is expected to occur later in 2023 or early 2024.
As for Ether bulls, the EIP-1559 burning mechanism launched in August 2021 was significant in driving the shortage of ETH, as illustrated by crypto analyst and influencer Kris Kay:
~11% of all $ETH provide now staked.
~2% of all $ETH supply now burnt
~ 100% of $ETH it’s ultra sonic money
—Kris Kay | DeFi Donut (@thekriskay) August 15, 2022
The much-anticipated move to the Ethereum beacon chain has been met with much criticism, despite eliminating the need to aid expensive and energy-intensive mining operations. Below, “DrBitcoinMD” highlights the inability of ETH players to withdraw their money, creating an unsustainable momentary discount on the supply side.
Anyone who nevertheless puts their religion behind the lanky Russian pseudo-intellectual and the Ethereum ponzi deserves what happens to them. pic.twitter.com/gjxHXdzuSK
– Doc (@DrBitcoinMD) August 11, 2022
Undoubtedly, the decrease in the amount of liquidity available in the market has caused a supply shock, especially after the 82.8% rally that Ether recently suffered. Nevertheless, these traders knew the dangers of ETH 2.0 staking and no guarantees were made for immediate transfers after the merger.
Prime Markets Reflect Doubtful Sentiment
Traders should take a look at Ether’s knowledge of derivatives markets to understand how whales and arbitrage desks are positioned. The 25% delta bias is a telltale signal whenever traders overcharge for security on the upside or downside.
If these market contributors feared a crash in Ether value, the bias indicator would jump above 12%. However, generalized enjoyment has a damaging bias of 12%.
The asymmetry indicator has remained neutral since Ether initiated the rally, even though it examined the $2,000 resistance on August 14th. The lack of improvement available in market sentiment is of little concern as ETH choice traders are currently pricing comparable upside and drawdown. dangers of countervalue movement.
Associate: Ethereum ICO Era Whale Hardware Transfers 145,000 ETH Weeks Ahead of Merger
In the meantime, the long to short knowledge shows low confidence at the $2,000 level. This metric excludes externalities that may have only impacted choice markets. It also gathers information on trade buyer positions on the spot, perpetual and quarterly futures contracts, thus informing more about the positioning of qualified traders.
Sometimes there are methodological discrepancies between completely different exchanges, so readers should monitor changes instead of absolute numbers.
Although Ether was up 18% from Aug. 4 to Aug. 15, skilled traders barely reduced their leveraged long positions, in line with the long-to-short indicator. For example, the Binance Trader Ratio improved significantly from the start of 1.16 but ended the period below its start level near 1.12.
In the meantime, Huobi posted a slight drop in its long-short ratio, as the indicator fell from 0.98 to the current 0.96 in eleven days. Finally, the metric peaked at 1.70 on OKX trade but barely rose from 1.46 on August 4 to 1.52 on August 15. So, on average, traders were not sufficiently insured to maintain their leveraged bullish positions.
There has been no major change in the leverage positions of whales and market makers, regardless of Ether’s 18% good since August 4. . For example, strong proof-of-work fork support would emphasize ETH.
One thing is certain, in the meantime, skilled traders are unsure that the $2000 resistance could simply be damaged.
The views and opinions expressed herein are solely those of author and do not substantially reflect the views of Cointelegraph. Every transfer of financing and buying and selling carries a danger. You must do your personal analysis when making a choice.