Ethereum: The fate of this whale hangs in the balance as…

have consequently gone into a recess, thus leading to a surge in bearish expectations. As such, short positions are piling up.A $12 million short position on ETH meant that some whales were optimistic about the potential downside opportunities. Such positions will cash out large if the price dips. On the other hand, they stand to lose if the bulls resume control over the market.

A look at ETH’s long versus short ratio reveals that both are almost evenly matched, with longs slightly higher.The level of shorts and longs is an important indicator. This is because it has the potential to determine the market outcome. Higher short positions than longs may discourage short-term holders and trigger sell pressure.

On the other hand, short position liquidations, especially in large amounts, may trigger more bullishness.The opposite is true for heavy liquidation of long positions. It thus warrants a look at factors such as leverage and demand in the derivatives market. The demand in the derivatives segment bounced back on 19 June, while the estimated leverage ratio bounced back on 23 June.The surge in leverage is especially noteworthy because of ETH’s press time price level. The recent upside pushed ETH into aAs a result, the level of sell pressure and bearish expectations were on the rise. This explained why short positions are rising and may overtake the longs.It’s worth noting that ETH’s MFI was approaching the overbought zone at press time.

However, there is still a chance that whales might be incentivized to push the price up and trigger short liquidations.

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