Ethereum Price Today: $2,550
- Ethereum is experiencing increased buying pressure on crypto exchanges and spot ETH ETFs.
- However, short positions dominate the Ethereum derivatives market.
- ETH could face further selling pressure if bulls fail to defend a key ascending triangle support.
Ethereum (ETH) has risen by 1% on Monday, amidst mixed signals in its on-chain data. Buyers are leading on spot exchanges, but shorts dominate the derivatives market.
Ethereum Shorts Hinder Spot Buying Pressure from Igniting Price Growth
Ethereum exchange flows have returned to net negative in the last 48 hours, indicating that investors are increasingly moving funds from crypto exchanges to private wallets. This shows that buying pressure has regained dominance on spot exchanges after three consecutive days of net positive flows, or seller dominance, the longest streak since mid-April.
Despite the slight net selling of ETH recorded on crypto exchanges towards the end of last week, spot Ether ETFs in the U.S. maintained a bullish structure, recording a weekly net inflow of $248.31 million, according to data. This marks the second consecutive week and six straight days of positive flows for the products. In contrast to crypto exchange flows, inflows into spot ETFs represent buying activity.
Meanwhile, short traders have maintained dominance in the ETH derivatives market in the last two weeks, as revealed by the failure of the Ethereum buy-sell ratio to cross above its neutral level.
The indicator tracks the ratio of buy volume divided by sell volume in ETH perpetual futures, with values below 1 indicating a dominant bearish momentum.
A similar sentiment is notable on Binance, where investors have been rapidly expanding their short positions in ETH since its increase of more than 20% from May 8 to 12.
The combination of dominant short positions in ETH derivatives and buying pressure on spot exchanges partly explains why its price has remained within a range in the last two weeks.
Ethereum Price Forecast: ETH Could Face Selling Pressure If It Loses Ascending Triangle Support
Ethereum saw $41.87 million in futures liquidations in the last 24 hours, according to data. The total amount of long and short liquidations is $17.30 million and $24.57 million, respectively.
The leading altcoin briefly fell below $2,500 over the weekend but quickly recovered on Monday.
ETH is currently struggling to find direction after bouncing off the support of an ascending triangle pattern. The 14-day exponential moving average (EMA) also serves as dynamic support near the ascending trendline of the triangle. A firm drop below these support levels could send ETH to the key range of $2,260 – $2,100.
On the upside, ETH continues to face intense selling pressure whenever it approaches the resistance range of $2,750 – $2,850. A move that turns this range into a support level could see ETH begin another major bullish trend towards the $3,250 level.
The Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) are above their neutral levels but trending sideways after seeing declines on Friday, indicating a weakening of bullish momentum. Meanwhile, the Moving Average Convergence/Divergence Indicator (MACD) crossed below its moving average line after its histograms turned negative, signaling an increase in bearish pressure.
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