This key Ethereum benchmark shows that ETH traders are not as bearish as they seem

This key Ethereum benchmark shows that ETH traders are not as bearish as they seem – Mail Bonus

Ether (ETH) has fallen by 25% in just one month and even a recent update in the proof of share (PoS) consensus on the Ropsten test network failed to move the price of altcoin.

The merger is intended to address energy consumption and pave the way for greater business performance, but no real full transition is expected for the Ethereum network until later in the year. Ethereum developer Parithosh Jayanthi also pointed out that there were some errors in the PoS implementation, but they should be fixed in the coming weeks.

Fortunately for Ethereum, two of its main competitors have recently faced their own challenges. The Solana (SOL) network faced a fifth failure in 2022 after no new blocks were manufactured for four hours on June 1st. Every distributed application was stopped until the validators could deal with the problem and re-synchronize the network.

Recently, Binance’s native BNB symbol fell 7% on June 7 after news that the US Securities and Exchange Commission announced that it had launched an investigation into the initial currency offer (ICO) from 2017. According to Bloomberg, at least one US resident said he participated in the ICO. which could be crucial for SEC cases.

Regulatory uncertainty may be partly responsible for Ether’s sharp correction. On June 6, the Hong Kong Securities and Exchange Commission (SFC) issued a statement warning of the investment risk of unchanged symbols. The regulator emphasized the opaque pricing of the sectors, illiquid markets and fraud.

Options traders are still very risk averse

Traders should look at Ether derivatives market data to understand how larger traders are positioned. The 25% delta error is a descriptive signal each time the whale and the type desk override upside down or down protection.

If these traders fear a fall in Ether prices, the error indicator will exceed 10%. On the other hand, the general voltage reflects a negative 10% error. This is precisely the reason why the measure is known as the measure of fear and greed of professional traders.

Ether 30 day options 25% delta error: Source: Laevitas.ch

The error rate has been above 10% since 22 May and recently peaked at 20% on 3 June. These levels indicate a strong fear of merchant traders, and despite a modest recovery, the current 17% delta error shows that whales and arbitration agencies are reluctant. to take down risk.

Data from long to short show some positive things

The long to short net share of top traders excludes external effects that could only affect the options market. By analyzing the position of these top clients on the spot, perpetual and quarterly futures contracts, it is possible to better understand whether professionals are leaning with bullish or bearish.

There is an occasional methodological discrepancy between different exchanges, so viewers should monitor changes instead of absolute numbers.

Major stock exchanges Ether long-term short-term. Source: Coinglass

Even though Ether struggled to maintain $ 1,800 in support, professionals did not change their position between June 5 and 9, according to the long-term short-term indicator.

Binance showed a modest decline in the long-term ratio, as the indicator moved from 0.99 to the current 0.96 in four days. Thus, these traders only raised their net bearish bets.

Huobi data show a similar pattern and the indicator moved from 1.02 to 0.98 on June 9, which was a small change that supported shorts. On the OKX exchange, the measured value fluctuated significantly during the period but ended almost unchanged at 1.35.

Connected: DeFi smit? Experts warn that “Staked Ether” disconnection from Ethereum by 50%

Data on mixed derivatives give bulls hope

Overall, there has been no significant change in the indebtedness of whales and market makers, despite the fact that Ether failed to break the $ 1,900 resistance on June 6.

On the other hand, options traders fear that a deeper correction in the ether price is likely to be underway, but at the same time, futures players have no conviction to increase bearish betting.

This reading is probably a “half-full glass” as the reluctance of top traders to cut below $ 1,900 could potentially create support levels.

The views and opinions expressed herein are theirs alone author and do not necessarily reflect the views of Cointelegraph. Every investment and business involves risk. You should do your own research when making a decision.