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Ethereum (ETH) has been trading sideways for a long time now. This made the bears more confident and, as a result, we saw the number of shorts accumulating. The weekly chart above for ETHUSDShorts on Bitfinex explains the whole scenario. A lot of people expected a turnaround around October, but when that did not happen, the bears became more confident. We saw the shorts go up over EMA 5 weeks to reach a new historical high. It is interesting to note that shortly thereafter, the number of courts began to decline with the same pace with which it had risen. Currently, the number of short films has declined and closed below the 21-week EMA EMA, which means they are going to fall further in the coming weeks.
Just like the whales prey of unsuspecting bulls in the upper part, they prey on unsuspecting bears on the bottom. Whales love traders who trade on feeling because they are soft targets. When they see the price not able to go up for a few weeks, they go to Bitfinex or Bitmex and open a short position. Before they know it, their trades are cleared by some intelligent whales that do this to live. Yes, they take advantage of people who make trading decisions based on sentiment because the sentiment does not take long to change. The Ethereum short films (ETH) are now down more than 50% compared to their historical maximum. Given the aggressive fall in prices, it is clear that many people have lost money in liquidated positions. Otherwise, they would not change their mind in such a short time considering that nothing special happened with Ethereum (ETH) in the meantime.
Ethereum (ETH) is definitely a good deal at its current price considering where it can go from here. However, market cycles have a way of creating investors who know the price of everything but the value of nothing. Some may even bet on the price that falls further, while others may wait and see if the price reverts. However, very few are willing to recognize that Ethereum (ETH) is a bargain at its current price and could pay off in the long run. Ethereum (ETH) is currently declining by more than 1% for the day, but it is by no means an indication of weakness. When the volume is so low, the price can be manipulated in both ways. What remains to be seen is if the 10 day EMA can exceed the 21 day EMA.
The MACD profile for the daily ETH / USD chart above shows that there is plenty of room for a rally from current prices. The price of Ethereum (ETH) may fall from current levels just as it could gather from here. However, we must understand the repercussions of a fall below support at this point. If Ethereum (ETH) falls below the trend line at this time, it will have to break the market structure. In this case, Ethereum (ETH) will have to enter another long-term correction. However, as long as the price remains above the trend line, there is no cause for concern.
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