Ethereum rose up slightly by 3% today as it stares in an offended manner at Ripple which has just pushed it off second position in market cap rankings.
That’s while some 100,000 eth longs were closed, bringing it down to 400,000 eth ($87 million) from ◊500,000.
The latter was an all time high by far, and even at 400,000 eth longs are at one of the highest level they’ve ever been.
Eth shorts fell a bit too, but far less at just ◊20,000 with ◊10,000 added again, while longs have hardly moved proportionally.
As can be seen above, longs and shorts have had much activity recently across the top three cryptos, with even bitcoin seeing some action where both longs and shorts are up.
In ripple, longs are within range, but shorts are far beyond the previous all time high of 20 million xrp to now 36 million.
It appears, however, only eth has been slightly rising in price while its longs have been falling since yesterday.
As you may know, going long means borrowing fiat to buy eth in the hope price rises. If it does, you then sell the eth by closing the long and pocket the difference.
All these eth closing, therefore, means some 100,000 eth has been sold just by margin traders on Bitfinex. At the same time, closed short positions have bought only ◊10,000. The market thus has absorbed 90,000 eth while maintaining a stable price and even slightly increasing in price.
That may indicate some buying has returned in eth after practically everyone went bear following nine months of selling.
Which may mean there is no one left to go bear any longer, thus some half a million eth was bought on September 24th as estimated based on public blockchain data.
Ethereum, moreover, has Devcon IV to look forward to. And, perhaps more than that, the ecosystem is anticipating an eth halvening of sorts in a few weeks when new supply is to be reduced by some 33%, lowering block rewards from 3 eth every 15 seconds to 2eth.
Assuming demand remains constant then the reduced supply should lead to some upwards pressure, but how it all develops now remains to be seen.