Ethereum Traders still Holding Long, Despite Unfavorable Market Conditions

The past few days have seen an upsurge of rallying to buy Ethereum and other cryptocurrencies after several weeks. However, Ethereum is having a price correction to $208 from its $227 monthly high, a difference of only 9%.

Even with this negative price difference, investors are not swayed, as they have kept on pumping more ETH into the cryptocurrency market.

Based on recent data released by crypto exchange firm Bitfinex, the amount of open position on the platform has risen to an impressive $361 million.

361m now pic.twitter.com/OCAJjvx6dH

— Josh Olszewicz (@CarpeNoctom) May 24, 2020

Although this is still 2% shy of the entire market capitalization, it’s well higher than the figure at the height of last year’s bull market. It’s also higher than the value at the beginning of this year.

At the peak of last year, the value was $150,000 while the beginning of the year saw a market capitalization of $70 million.

Observers say investors are having high hopes of an improved market capitalization despite the slightly reduced levels now. From the reaction of Bitfinex investors on Ethereum, it means they are hoping that the market will soon rally. But some signs are indicating that the rally they believed will occur may not materialize after all.

Ethereum Outlook shows looming storm clouds

Ethereum has gained 4 percent from the weekly low. However some analysts say from the perspective of technical analysis, the crypto coin remains in a shaky position

According to a technical analyst Teddy, there is a clear indication that the recent positions in the market “brought the asset out of a textbook pennant. He continued by pointing out that “the moon mission is now delayed”. But more investors are looking to buy more Ethereum, he said.

Forgot to update, moon mission delayed guys$ETH pic.twitter.com/9zuZWcVOcA

— Teddy (@TeddyCleps) May 21, 2020

Another analyst echoed the same skepticism shared by Teddy, in another analysis. He said Ethereum is presently reaching heavy resistance with heavy monthly and weekly open approaching. There are two levels hovering around $210 and $207, which Ethereum has not been able to surmount before.

To confirm an upside trend, an analyst using a chart, said the crypto coin will need to regain these high levels.

$ETH approaching heavy resistance with the WO & MO coming up.

Break this and we can talk about bula dreams again. pic.twitter.com/czFzoYjR5P

— Byzantine General (@ByzGeneral) May 22, 2020

More investors pilling up ETH despite a slow downturn

According to a blockchain intelligence company, IntoTheBlock, more investors are more interested in buying Ethereum rather than selling it. The firm stated yesterday in its order book data that there has been a heavy reduction in the levels of non-chain activities.

For ETH, the short term outlook may be bearish. However, some investors are seriously pilling up the cryptocurrency and are prepared to hold it for the long term. The big time ETH investors are also hoping for a huge rally, even if that movement may not happen now.