Analyst: ETH long positions on Binance raise risk of correction

An excessive concentration of Ethereum (ETH) long positions on Binance could signal a potential price correction, according to a CryptoQuant post by analyst Amr Taha. He noted that ETH open interest on the exchange has surged from $2.4 billion on Feb. 4 to $4.15 billion, with recent data showing short positions being cleared out as new longs enter the market. Taha warned that such one-sided positioning in the derivatives market could trigger a cascade of liquidations if prices move in the opposite direction. He also pointed out that ETH's on-chain profit reached $5.8 million on Feb. 6, adding that corrections have historically occurred when this metric approached the $6 million mark.