Whale dumps Bitcoin for $22M Ethereum long: Will the bet help ETH rise?

Ethereum [ETH] has continued to hover around $1.8k. After successfully rebounding from $1800, the altcoin has shown relative strength, rising to $1876. 

As of this writing, Ethereum was trading around $1866, up slightly by 1.7% on the daily charts. As ETH hovered around $1.8k, whales turned optimistic and opened long positions.

Whale dumps BTC for Ethereum long

According to Lookonchain, two newly created wallets sold 72 Bitcoin [BTC] worth $4.66 million and then jumped to Ethereum. 

After dumping BTC, the trader opened a 20x long position in 12,000 ETH, worth approximately $22.4 million. So far, with ETH holding above the entry price,  the whale is already up $275k, having spent $5.8k in funding fees. 

With the trader dumping BTC for ETH, the whale viewed it as a better alternative and a more promising bet. Interestingly, this whale was not an isolated case, as buyers have made a strong comeback in the market.

The Derivatives Taker Buy-sell Ratio climbed, reclaiming the 1 mark, and has so far held this level for two consecutive days. At 1.13, it suggests that more buy orders were executed on the derivatives side. 

As a result, significant capital has flowed into the Futures positions. Over the past 24 hours, $3.67 billion flowed into Futures positions, while $3.32 million flowed out.

For that reason, Futures Netflow rose 213% to $351.1 million, suggesting more capital flowed into new positions. 

Even more importantly, it seems most of these funds flowed into opening long positions. The Long/Short Ratio has held above 1, with an average of 2 across Binance.

This implies that more traders were bullish and anticipated more gains on ETH price charts.

Can this bullish shift help ETH?

Ethereum buyers, especially in derivatives, have begun to regain market control. In fact, the altcoin’s True Strength Index has held on an upward trajectory, rising to 15 at press time.

When TSI is rising, it indicates that bullish momentum is strengthening, with buyers gradually retaking the market. Often, when this indicator rises, it suggests the uptrend is strengthening and likely to continue.

In fact, the Momentum Adjusted Moving Average (MaMa) confirms the strength of this trend. ETH sits above both the MaMa at $1848 and the Positive Feedback Band at $1875.

Under these conditions, if buyers hold the derivatives side, the altcoin will flip $1900 and extend the uptrend. To hold this bullish outlook, Ethereum must hold above the MaMa’s Positive Feedback Band at $1875.

Final Summary

• A trader opened a 20x long position in 12,000 ETH, worth approximately $22.4 million, after dumping 72 BTC. 
• Ethereum shows relative strength, as buyers eye a daily close above $1.8k again.