Bulls In Control: Ethereum Longs See Biggest Candle Ever After ETF News
May 21 2024 - 11:00AM
NEWSBTC
Data suggests users on Binance responded to the Ethereum
exchange-traded fund (ETF) news by aggressively longing the
cryptocurrency. Ethereum Net Taker Volume On Binance Has Just Seen
Its Biggest Candle Ever As explained by CryptoQuant community
manager Maartunn in a post on X, the Ethereum Net Taker Volume has
observed a sharp increase after rumors have surfaced that the ETH
spot ETFs have a renewed chance of gaining approval. The “Net Taker
Volume” here refers to an indicator that keeps track of the
difference between the ETH taker buy and taker sell volumes on any
given centralized exchange. Related Reading: Litecoin Whales Go On
$230 Million Buying Spree: Will This Change LTC’s Stars? When the
value of this metric is positive, it means that the taker buy or
long volume is outpacing the taker sell or short volume on the
platform right now. Such a trend implies a bullish sentiment is
dominant among the investors. On the other hand, the indicator
being negative suggests the presence of a majority bearish
mentality among the users of the exchange as the shorts are
outpacing the longs. Now, here is a chart that shows the trend in
the Ethereum Net Taker Volume on the cryptocurrency exchange
Binance over the last few years: As displayed in the above graph,
the Ethereum Net Taker Volume on Binance has just registered a huge
positive spike, the implying investors have just opened a large
amount of longs on the platform. More specifically, the indicator’s
value during this spike has been $530 million, which, according to
the analyst, is the single largest spike the cryptocurrency has
ever seen. “Binance-traders are longing the Ethereum ETF-news like
there is no tomorrow,” notes Maartunn. This isn’t particularly
surprising, considering the market is very well aware what a spot
ETF could mean for the asset after having witnessed what went down
for Bitcoin. The ETF news pre-approval had been bullish for BTC and
while the approval itself had initially led to bearish price
action, it eventually paid off for the asset as capital started
rapidly flowing in through these investment vehicles and the coin
enjoyed a rally that led to a new all-time high (ATH). In another X
post, the CryptoQuant analyst pointed out that the Ethereum Open
Interest has shot up as well. The “Open Interest” measures the
total amount of ETH-related positions that are currently open on
all derivative exchanges. This trend isn’t that unexpected, given
that derivatives users have been opening a large amount of longs
for the asset. With this rapid surge, the Ethereum Open Interest
has managed to set a new ATH. Related Reading: Bitcoin
“Profit-Taking Has Completed,” Top Analyst Reveals Historically,
intense speculation has generally led to more volatility for the
coin, as the risk of large liquidations happening can become high
in such periods. As such, this Open Interest spike may signal some
turbulent times ahead for Ethereum. ETH Price So far in the rally
fueled by the ETF news, Ethereum has managed to break past the
$3,800 level, which is a milestone the coin hadn’t achieved since
mid-March. Featured image from Shutterstock.com, CryptoQuant.com,
chart from TradingView.com
Quant (COIN:QNTUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Quant (COIN:QNTUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024