Critical Warning for This Altcoin: Whales Are Turning to Short Positions

As concerns grow about selling pressure on Ethereum ($ETH) in the cryptocurrency market, analyst Joao Wedson noted a significant shift in the positions of large investors and suggested a new wave of liquidations could be on the horizon.

According to data shared by Wedson, Ethereum’s 30-day and 180-day open interest delta (OED) are both in negative territory. The Whale vs. Small Investor delta indicator, which shows the difference in positions between whales and individual investors, is similarly trending negative.

The analyst said that this data indicates that large market participants have significantly reduced their long positions and shifted more towards short positions over time.

However, the total open interest in the Ethereum futures market remains high, at approximately 10.58 million $ETH. According to Wedson, the significant amount of leveraged positions still present in the market leaves Ethereum vulnerable to a new wave of forced liquidations.

According to Wedson, the fact that the total amount of open positions remains high despite position changes by large investors raises concerns that liquidations could trigger each other in the event of sharp price movements.

*This is not investment advice.