Ethereum Whales Accumulate as Short Positions Surge 4.16%

The Ethereum (ETH) market is currently experiencing a significant surge in short positions, which has sparked intense speculation among traders and analysts about a potential downtrend. Despite this bearish sentiment, recent on-chain activity indicates that Ethereum has become increasingly popular among whales, who continue to accumulate the cryptocurrency.

As the weekend approaches, the Ethereum market has become a focal point for discussion, with the price of ETH showing increased volatility and uncertain movements. Various market analysts and traders have noted that record ETH short positions have hit the market, accompanied by a notable spike in trading activity. This development comes as Ethereum’s price hovers in a volatile range, with historical data suggesting a potential reversal on the horizon.

A chart shared by an analyst reveals a sharp increase in Ethereum (ETH) shorts, a pattern that has historically preceded price recoveries. The analysis also indicates a significant accumulation of bearish bets, raising questions about whether retail traders are falling into a classic market trap. A liquidation heatmap highlights a “Massive Liquidity” zone from ETH’s current market price to $2,500 levels. This area could trigger a cascade of liquidations if ETH prices surge, potentially amplifying volatility by 20-30%, as noted by analysts.

Despite the narrative of a bear trap gaining traction, institutional investors and whales are believed to be exploiting this scenario with continued acquisitions. As institutional moves account for up to 70% of crypto market swings, these purchases hint towards a strategic move to get into the market before any massive price actions. Moreover, these whale wallets are quietly accumulating ETH, also suggesting growing confidence in an impending upward move.

At the time of writing, Ethereum (ETH) is trading near $2,450—down 4.16% in the past 24 hours. It dipped to as low as $2,100 last week on leading crypto exchanges, when the recent geopolitical tension crashed world markets. The trajectory for Ethereum price remains under pressure, but the interplay between retail shorting and whale buying could be pivotal. With increasing institutional buying and investors’ anticipation for new highs, ETH is expected to break above $2,500 and liquidate all those short traders.

Ethereum (ETH) has been experiencing significant market activity, with massive short positions being taken while whales continue to accumulate the cryptocurrency. Despite a recent 1.5% drop, Ethereum is currently trading above the crucial $2,400 support level, indicating a potential rally in the coming weeks. Analysts believe that if ETH maintains this support, it could see a significant rise, with key resistance levels to watch at $2,510–$2,520, and potential targets of $2,600 and $2,800 if these levels are broken.

The technical analysis suggests that Ethereum’s ability to stay above $2,400 is a positive sign for its short-term future. Holding above this crucial range low indicates a likely test of the other side of the range in the upcoming weeks. The cryptocurrency recently hit $2,520 but faced resistance and fell back, currently trading above the $2,400 mark and the 100-hourly Simple Moving Average. This posture shows that despite bearish pressure, the support structure remains intact.

The technical indicators present a mixed outlook. The hourly MACD is losing strength in the bullish zone, while the RSI has fallen below the neutral 50 mark. Analysts suggest that if Ethereum can regain momentum and break above the $2,520 barrier, it might aim for higher resistance levels at $2,550, $2,600, and potentially even $2,720-$2,800 in the near future.

Whale activity and institutional interest in Ethereum are on the rise, signaling growing confidence among investors. Large investors purchased 1 million ETH on June 16, marking the biggest single-day purchase since 2018. Institutional interest has also surged, with spot Ethereum ETF flows experiencing three consecutive days of inflows, totaling $232.4 million. This follows a record-breaking 19-day stretch of inflows, indicating sustained institutional investment in Ethereum.

Network fundamentals also show encouraging growth. Active addresses on the Ethereum network have started to rise again after a downturn, with the number of transactions increasing from 1.23 million to 1.75 million between Sunday and Wednesday. This 42% rise in network activity suggests growing interest in the Ethereum ecosystem, despite sideways price movements. However, whale balances holding between 10,000 and 100,000 ETH have remained relatively constant, increasing by only 7,000 ETH since the start of the week.

The derivatives market reflects a balanced attitude, with $75.11 million in futures liquidations in the last 24 hours, and long and short holdings evenly split. Open interest has struggled to exceed 13 million ETH since last Saturday, indicating cautious trading behavior. Despite the recent volatility, the overall sentiment remains optimistic, with whales and institutions continuing to accumulate Ethereum, positioning themselves for potential future gains.