Ethereum News Today: Ethereum faces intense selling as smart money doubles down

Ethereum is experiencing a surge in selling pressure, despite significant short-term bearish moves being matched by large investors increasing their exposure to the asset. A major Ethereum short, identified by the address 0xCB92, has escalated his bearish bet by increasing his short position to $99.27 million in ETH, with a tight liquidation level set at $3,852.4. The trader, who previously held 60,000 ETH valued at $213.5 million, has demonstrated strong conviction that Ethereum could experience a sharp decline from current levels [1].

The move came after a partial liquidation triggered by a brief price rebound above $3,700. Rather than retreating, the trader doubled down by selling 915 ETH ($3.38 million) and 1.49 million ARB ($598K), and subsequently deposited $3.98 million in USDC into Hyperliquid to continue shorting Ethereum [1]. This action underscores a broader bearish sentiment and suggests that key market participants are bracing for a deeper correction.

The broader market corroborates this bearish bias. Ethereum’s net taker volume hit -$418.8 million on a daily basis, indicating that 116,000 more ETH were sold than bought. This is one of the most extreme readings in recorded history and historically has coincided with local tops, signaling potential downside moves [1]. According to crypto analyst Cas Abbé, this level of selling pressure has rarely occurred without subsequent price declines, and the current red bars in the ETH volume chart reflect aggressive short-term bearish positioning, particularly from late 2022 to the present [1].

While Ethereum’s price appears stable in the short term, the persistent sell pressure from institutional and sophisticated traders suggests the market may face intensified volatility. Short-term data shows that 30-minute intervals continue to reflect bearish dominance, with large players maintaining their bearish stance [1]. Analysts are now closely monitoring key support levels, as a breakdown below the $3,852 liquidation threshold could trigger massive liquidations and increased market instability [1].

On the other side of the spectrum, there are signs of resilience and long-term confidence in Ethereum. A blockchain analytics firm noted increased whale activity, suggesting that large investors see value in Ethereum’s current price range [1]. This aligns with historical patterns where Ethereum has consistently reclaimed key levels after periods of price deviation [1]. The market is now in a delicate balance between short-term bearish momentum and long-term bullish positioning.

As Ethereum navigates this period of uncertainty, the actions of “smart money” indicate that key investors continue to see Ethereum as a foundational asset in the evolving crypto landscape. Whether this will lead to a sustained recovery remains to be seen, but the current dynamics highlight the growing maturity of the market, where price corrections are met with both caution and confidence [1].

Source:

[1] https://cryptofrontnews.com/ethereum-faces-intense-selling-as-smart-money-doubles-down/