{"id":27028,"date":"2022-05-17T02:02:28","date_gmt":"2022-05-17T06:02:28","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=27028"},"modified":"2022-05-17T02:02:36","modified_gmt":"2022-05-17T06:02:36","slug":"ethereum-shorts-build-up-as-eth-exchange-supply-increases","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ethereum-shorts-build-up-as-eth-exchange-supply-increases\/","title":{"rendered":"Ethereum Shorts Build Up As ETH Exchange Supply Increases"},"content":{"rendered":"\n
Ethereum<\/a> price is expected to recover from the drop it suffered last week, following the building up of its shorts.<\/h5>\n\n\n\n
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The world's second-largest cryptocurrency, Ethereum (ETH<\/a>), has entered a major correction amid the broader market crash. Following last week's drop, the price of ETH has been hovering around $2,000 levels.<\/p>\n\n\n\n

Santiment, an on-chain data provider, gives us some insight into what Ethereum's next price action might be (ETH). On an 8-hour chart, the data provider noted that there have been heavy shorts building up for Ethereum at $2,000.<\/p>\n\n\n\n

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Image credit: Santiment<\/figcaption><\/figure>\n\n\n\n

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However, Santiment adds that this rarely ends well for the shorter, and a short squeeze is likely to ensue. As a result, the price of Ethereum may recover.<\/p>\n\n\n\n

However, another worrying factor is the ETH exchange supply. Santiment\u00a0notes\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>:<\/p>\n\n\n\n

“While we saw a nice drop in supply on exchanges for the past year or so, May 1st 2022 saw a huge increase in supply on exchanges as folks rushed to exit their positions, which is reflected on the price itself.”<\/p><\/blockquote><\/figure>\n\n\n\n

As a result, any further increase in the exchange supply would fuel another drop. This indicates that investors are in a panic and have given up completely. Even though the situation appears to be dire, this could be an excellent time to fill new positions.<\/p>\n\n\n\n

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Some Positive Ethereum Indicators<\/p>\n\n\n\n

Santiment cites Ethereum's 90-day MVRV (Market-Value-to-Realized-Value) Ratio. It goes on to say that the MVRV, which “measures the mid-term profit\/loss of holders,” “shows that we are almost into the opportunity zone, which historically has seen a local bottom develop with a decent R\/R.”<\/p>\n\n\n\n

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On the other hand, global macros will continue to play a big role in deciding the crypto market momentum. Amid persisting inflation, the U.S. equity market and the S&P 500 are showing signs of weakness amid the fear of aggressive interest rate hikes by the Federal Reserve. At the same time, the fears of the United States going into a recession are high.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ethereum price is expected to recover from the drop it suffered last week, following the building up of its shorts. The world’s second-largest cryptocurrency, Ethereum (ETH), has entered a major correction amid the broader market crash. Following last week’s drop, the price of ETH has been hovering around $2,000 levels. Santiment, an on-chain data provider, […]<\/p>\n","protected":false},"author":33,"featured_media":27037,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23],"tags":[],"class_list":["post-27028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/how-to-buy-ethereum.jpeg.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/27028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=27028"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/27028\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/27037"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=27028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=27028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=27028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}