Ethereum longs have been on a bull run for an entire year throughout the bear market, reaching a recent high of 560,000 eth and currently standing at about ◊510,000, worth circa $72 million.
Even as price kept falling for months on end, bets that it will rise have kept increasing for the past 12 months, reaching now close to the bitcoin longs levels of circa $96 million (₿23,500).
One reason for this constant increase in the number of eth betting long could be because price has fallen. So what in dollar amounts is 2 eth today would have been 1 eth a few months ago.
In March 2018 for example, and if for simplicity we say price was $1,000, the 80,000 eth longing at that point would have been about $80 million.
Now that price has fallen 10x, the number of eth longing has increased, but in fiat amounts it has largely remained the same.
That might suggest that rather than speculative traders betting price will rise in the short term, longs are instead perhaps being used as a hedge.
Shorts, on the other hand, have had different directions. They rose to a high of ◊440,000 in December when price reached a low of $80, and have been falling since to now about 100,000 eth or circa $14 million.
Here, presumably, the market thinks that there isn’t much of a likelihood of price going down, or shorts have been called as price has risen and new ones haven’t been added.
Ethereum’s price has slowly been rising since December in an apparent gradual uptrend over the past few months.
A recent high of $165 gave way to a sharp drop, but since then there has been a recovery of sorts with new higher highs and higher lows.
Meaning general sentiment may have changed towards a price rise being more likely than a price fall. Hence perhaps why far more are betting long than short.