⚔️ Ethereum Demand Picks Up — Yet Short Dominance Caps Breakout
Crypto exchanges and spot ETH ETFs saw increased Ethereum purchasing pressure.
But short positions dominate Ethereum's futures market.
If bulls fail to defend an ascending triangle support, ETH may sell off.
On Monday, Ethereum (ETH) rose 1% after on-chain data showed buyers leading on spot exchanges but shorts dominating derivatives.
Ethereum shorts hinder spot purchasing from driving price increase.
Ethereum exchange flows reverted to net outflows during the previous 48 hours, suggesting investors are shifting assets to private wallets. After three days of net inflows or seller domination, the longest since mid-April, spot markets have seen buying pressure return.
Despite minor net ETH selling across crypto exchanges last week, SoSoValue data shows US spot Ether ETFs had a positive structure with a weekly net inflow of $248.31 million. The goods have had favorable flows for two weeks and six days. In contrast to crypto exchange flows, spot ETF inflows reflect purchasing.
The Ethereum Taker Buy Sell Ratio has not crossed above neutral in the previous two weeks, indicating that short traders have dominated ETH's derivatives market.
The ratio of ETH perpetual futures purchase volume to sale volume indicates negative momentum below 1.
Over 20% spike in ETH from May 8 to 12 has led Binance investors to swiftly extend their short holdings.
Due to strong short positions on ETH derivatives and purchasing pressure on spot exchanges, its price has ranged for two weeks.
Coinglass data shows $41.87 million in Ethereum futures liquidations in 24 hours. Long liquidations total $17.30 million and short liquidations $24.57 million.
The leading cryptocurrency fell below $2,500 over the weekend but rebounded on Monday.
After rebounding from an ascending triangle pattern, ETH is facing direction issues. The triangle's rising trendline faces dynamic support from the 14-day Exponential Moving Average (EMA). A break below these support levels might take ETH to $2,260–$2,100.
