Derivatives Traders are Going Long ETH

Derivatives data on Ethereum shows that most traders are positioned long on ETH now that exchange traded funds (ETFs) are live.

The long versus short ratio has been gradually increasing over the last week, and over 70% of positions on ETH are now betting that the price will continue upwards, according to Coinalyze.

The 2.33 long-to-short ratio is the highest since July 3, but still falls short of the local high of 2.78 touched on May 10.

On the other hand, BTC’s long-to-short ratio has been bleeding downwards over the last week, which marks an outlier as BTC and ETH’s ratios typically move in line.

The diverging data indicates that traders are positioned on the assumption that Ethereum ETFs may drive ETH to outperform relative to Bitcoin.

In spite of bullish demand and strong ETF inflows, Ethereum is down 1.1% over the last 24 hours compared to BTC’s 1.8% and Solana’s 3.9% drawdowns.