Ethereum has been trading in a tight price range in recent days, but activity in derivatives markets indicates serious tension in the market below the surface. According to CoinGlass data, approximately $874 million long positions are at risk for Ethereum below $2,206. On the other hand, if it is above $2,412, there is a possibility that the short position of $403 million will be liquidated.
Whale mobility and spot purchases
Looking at Santiment data, it was seen that major investors accumulated more than 140,000 Ethereum in total between May 1-3. The market value of this amount reached approximately 322 million dollars. These purchases increased the total Ethereum balance of major wallets from 13.83 million to 13.98 million in a short time.
In the last 96 hours, investors known as whales purchased more than 140,000 Ethereum, making approximately $322 million worth of purchases.
According to CryptoQuant’s order size analysis, after whales made bulk purchases in the $2,005-2,100 range in early April, they increased this level to $2,250-2,300 towards the end of the month. Especially on May 2, a single transaction of 556 ETH at $2,316 stood out. Analysts interpreted this movement as indicating that whales tend to rally as they ascend.
Positive change in ETF inflows
Institutional investors showed renewed interest in Ethereum-based exchange-traded funds on May 1, following a four-day exodus. According to Farside Investors’ current report, there was a net inflow of $101.2 million into spot Ethereum ETFs. A significant amount of this amount went to BlackRock’s ETHA product and Fidelity’s FETH fund; There was a positive inflow of $43.2 million and $49.4 million, respectively.
Other ETF providers saw smaller and more mixed inflows and outflows. Thus, it is noticeable that large funds started to return to Ethereum after a short-term negative atmosphere.
Price range, resistance and ETH/BTC ratio
Data in the order books show heavy selling liquidity in the $2,350 to $2,500 range. Therefore, Ethereum breaking above $2,400 is identified as a strong resistance. In the opinion of market analyst Ted Pillows, ETH will continue its sideways movement unless it makes a permanent close above $2,400.
The ETH/BTC rate is currently hovering around 0.0294. Analyst Michaël van de Poppe evaluated: “If the rate clearly exceeds 0.032 BTC, the real movement starts there.”
The ETH/BTC rate continues to be an important indicator for investors. Because although dollar-based Ethereum accumulation increases, it is stated that if this rate does not increase, Ethereum may continue to remain in the background against Bitcoin.
Market squeeze and leverage risk
The total open position size is approximately 30 billion dollars. While the volume in futures transactions reached 18 billion dollars in the last 24 hours, the volume in the spot market remained below 1 billion dollars. These rates show that leverage in the market is growing faster than the increase in demand.
A price movement above $2,412 or below $2,206 could lead to sharper fluctuations with the liquidation of large amounts of positions. Therefore, the determining factor that currently directs the price is position distribution rather than direct buying and selling.
