The data shows that around 300,000 ETHUSD long positions have been closed in the Bitfinex Ethereum futures market, something that could provide resistance to the latest rally.
Ethereum long positions are down over 300,000 over the past few days on Bitfinex
As pointed out by an analyst at CryptoQuant MailPrevious data of ETHUSD longs on crypto exchange Bitfinex indicates that the current pattern may be bearish in relation to the value of the coin.
The relevant metric here is the total number of long Ethereum positions (ETHUSD pair) currently open in Bitfinex exchange.
When the value of the index is high, it means that the uptrend is more dominant among the investors on the platform at the moment.
On the other hand, lower values may indicate that whales on the exchange do not currently believe that the price of the currency will rise soon.
Now, here is a chart showing the trend in ETHUSD long positions On Bitfinex for the past year:
The value of the metric seems to have sharply declined in recent days | Source: CryptoQuant
As you can see in the chart above, the quantity from the post identified relevant trend points for long ETHUSD positions on Bitfinex during the period.
It seems that whenever Ethereum long positions on the platform notice a decrease, the value of the cryptocurrency drops as well.
This trend occurred either immediately after the pullback of the indicator, or a few days after the fact.
The longest gap between price declines and metric declines in the past year dates back to March, when the cryptocurrency continued to rally for 18 days before forming a local top.
Last week, Ethereum long positions on Bitfinex once again saw a sharp downward movement, as about 300k of these positions were closed.
So far, the coin has been going up for 6 days now. If the previous pattern is anything to go by, the current trend could mean that ETH could see a local top forming in the next 12 days.
At the time of writing this report, Ethereum price It is floating around $1.7K, up 8% in the past seven days. Over the past month, the value of the cryptocurrency has gained 40%.
The chart below shows the currency price trend over the past five days.
Looks like the price of the coin has been mostly trending sideways during the last few days | Source: ETHUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com