241126: Ether Favored in Crypto Rotation as Bitcoin Recoils Off $100K Sell Wall

After a prolonged downtrend relative to bitcoin (BTC), Ethereum's ether (ETH) is showing signs of a resurgence. ETH, the second-largest cryptocurrency on the market, gained over 4% in the past 24 hours, while BTC lost 1.5% during the same time, dipping below $95,000 during the Monday session.

The outperformance happened as investors started to rotate capital to smaller, riskier cryptocurrencies over the weekend following the stall of bitcoin's near-vertical surge since Donald Trump's election victory. The ETH/BTC ratio, which measures ether's strength vs. bitcoin, plummeted to as low as 0.0318 on Thursday, its weakest reading since March 2021, but the gague has gained 15% since to 0.3660 at press time.

"The market seems to be expecting BTC to trade sideways until December as attention shifts towards ETH in the near term," digital asset hedge fund QCP said in a Monday note. On the options markets, ETH risk reversals are heavily skewed in favor of frontend calls, meanwhile BTC calls seem to be more bid only from the end of December 2024 onwards, QCP noted. The positioning implies that traders anticipate ether to perform well in the short-term, while bitcoin could pick up pace next year. Risk reversal is a strategy that involves purchasing simultaneously a call option (bullish bet) and a put option (bearish bet) for a specific risk-reward profile.

Source: CoinDesk

Futures Market Updates

Even after $200M of long liquidations on BTC and ETH markets, the funding rates are still showing extremely bullish sentiment.

Bitcoin Futures Updates

Total BTC Open Interest: $62.43B (-0.84%)

BTC Volume (24H): $129.47B (+64.30%)

BTC Liquidations (24H): $116.97M (Long)/$28.71M (Short)

Long/Short Ratio: 48.20%/51.80%

Funding Rate: 0.0211%

Ether Futures Updates

Total ETH Open Interest: $21.33B (+3.69%)

ETH Volume (24H): $76.24B (+91.18%)

ETH Liquidations (24H): $51.93M (Long)/$33.86M (Short)

Long/Short Ratio: 48.89%/51.11%

Funding Rate: 0.0268%

Top 3 OI Surges

COS: $14.45M (+289.40%)

GLM: $57.40M (+178.47%)

SCRT: $17.20M (+129.84%)