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.
Countintuiviely, low funding rates are often seen in the cryptocurrency market before a move higher as short positions are more easily squeezed out.
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!”
This was echoed by Logan Han, a prominent trader on Binance’s futures market.
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.
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