Ethereum News Today: Institutional Bets and Bear Traps Define Crypto's Tense Crossroads

Bitcoin and ether prices have shown limited movement in recent trading sessions, consolidating near recent lows amid a broader slump in altcoin sentiment. The cross-crypto sell-off over the past 24 hours has liquidated approximately $500 million in long positions, per CoinGlass data [1]. Meanwhile, speculative traders have opened record leveraged short positions on Ether, with the CME Group noting unprecedented bearish positioning [1].

Bitcoin briefly rebounded to $116,000 after the Wall Street open on Tuesday, as bulls attempted to trigger a short squeeze [1]. However, the move did not hold, and the coin continued to trade in a $112,000–$120,000 range, with traders anticipating further consolidation through the third quarter. Ether, on the other hand, saw renewed bearish pressure as leveraged short positions hit a record high, per Barchart [1]. The altcoin is now trading in a $3,900–$4,400 liquidity range, with analysts suggesting that dips toward the $3,000–$3,500 level could set up a potential rally toward $8,000 [3].

The broader market sentiment remains cautious, with traders de-risking ahead of the U.S. Federal Reserve’s Jackson Hole symposium, a historically significant event that often influences macroeconomic sentiment. QCP Capital noted that the symposium could provide critical guidance on the Fed’s policy trajectory, especially in light of recent inflation data, including a 0.9% month-on-month rise in producer prices [1]. If Bitcoin fails to break above $116,800, analysts expect a confirmation of a bearish trend that could lead to widespread capitulation [1].

Institutional investors continue to build significant positions in crypto assets, with BitMine’s Ethereum treasury surpassing 1.52 million ETH—valued at approximately $6.61 billion—making it the largest single-crypto treasury and the second-largest overall after MicroStrategy’s Bitcoin holdings [2]. The firm’s rapid accumulation of ETH over the past week highlights growing confidence in the altcoin’s long-term fundamentals, particularly in the context of blockchain finance and AI integration [2].

Mantle, a Layer 2 scaling solution for Ethereum, has also seen a notable price surge recently. The MANTLE token has increased by approximately 15% in the past 24 hours and is currently trading at $1.36, outperforming many Layer 2 alternatives [4]. The token’s price action has been supported by strong inflows and a rising buyer-to-seller ratio, indicating a shift in market sentiment. Mantle’s market cap now exceeds $4.48 billion, with its circulating supply accounting for about 54% of the max supply [4].

Looking ahead, the market’s focus remains on macroeconomic indicators and the Fed’s upcoming remarks. Institutional demand for Ethereum continues to grow, with record ETF inflows and technical indicators suggesting that Ether remains fundamentally bullish. However, the near-term path remains uncertain, with key support and resistance levels likely to dictate price direction in the coming weeks [1].

Source: [1] Bitcoin, Ether set for squeeze as traders go record short (https://cointelegraph.com/news/bitcoin-ether-eye-short-squeeze-as-traders-build-largest-ever-eth-short) [2] BitMine's Crypto Holdings Surpass 1.52 Million ETH To (https://finance.yahoo.com/news/bitmines-crypto-holdings-surpass-1-123858320.html) [3] ETH charts predict $3.9K retest, then a 100% rally to new (https://cointelegraph.com/news/eth-charts-predict-dollar3-9k-retest-then-a-100percent-rally-to-new-highs) [4] Mantle Price, MANTLE Price, Live Charts, and Marketcap (https://www.coinbase.com/price/mantle)