Binance Futures Trend: Ethereum May Soon Pop Higher After 30% Drop


  • Ethereum may be poised to move higher after dropping 30% from last month’s highs.
  • Futures data shows that investors are currently bearish on the cryptocurrency, which should lend to a potential short squeeze.

Ethereum Could Soon Surge to the Upside: Futures Trend

Crucial futures data suggests that Ethereum may soon revert to the upside, not move lower.

One crypto-asset analyst recently shared the data below, which shows the positioning of ETH futures traders on Binance. The data is from HyBlock Capital, a crypto-asset derivatives data firm.

The data shows that the aggregate Ethereum trader on Binance’s futures trading platform is currently positioned extremely bearish.

For instance, the funding rate of Binance’s ETH market is currently negative, which only takes place 3-5% of the time. The rarity of the current market conditions, the trader who shared this data explains, suggests that the cryptocurrency will soon break higher.

How To Get Free Crypto  

Countintuiviely, low funding rates are often seen in the cryptocurrency market before a move higher as short positions are more easily squeezed out.

Chart of ETH's futures positioning data shared by crypto trader Byzantine General (@Byzgeneral on Twitter). Data from crypto data and analytics firm
Hyblock Capital.

Technicals Agree With Optimistic Outlook

The technical trends agree with the optimistic outlook depicted by futures trends. As reported by Bitcoinist previously, one trader said on the outlook of Ethereum on a macro scale:

“Personally with so much uncertainty in the market it is very possible we see a $300 region retest, that said honestly HTF structure is looking great, lots of EMA support below us… In 2018/2019 the 55 EMA was consistently resistance, price now trending well above!”

Chart of ETH's price action over the past few years with analysis by crypto trader Crypto Cactus (@TheCryptoCactus on Twitter). 
Chart from TradingView.com

This was echoed by Logan Han, a prominent trader on Binance’s futures market.

Chart of ETH's price action over the past few years with analysis by crypto trader and leading Binance analyst Logan Han (@loganhan_ on Twitter). 
Chart from TradingView.com

Referencing the chart above, commented that he thinks the cryptocurrency is currently in a good position because it has formed a falling wedge pattern, which is suggestive of an imminent break to the upside.

Featured image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Binance Futures Trend: Ethereum May Soon Pop Higher After 30% Drop

Go to Source
Author: Nick Chong

Coinbase Banner  

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.