Ethereum appears to be on the brink of a significant movement, leaving short sellers feeling the pressure. More than $10 billion in ETH shorts are currently precariously positioned. If the price breaches the $4,359 level, it may trigger a liquidation cascade that propels ETH to new heights. The recent downtrend appears to be losing momentum, while bullish sentiment is gaining traction. Amidst the market’s prevailing gloom, Ethereum is beginning to gain traction, and this development is certainly not a coincidence.
Throughout last week, funding rates remained in the negative territory, indicating that traders were incurring costs to maintain their short positions. Such bearish sentiment frequently emerges just ahead of a market reversal. It’s not only the charts that are shifting; the whales are making moves as well. In a stunning move, Bitmine acquired a massive 234,846 ETH, valued at $963 million, just yesterday. This acquisition has propelled their total holdings to an impressive over $10.8 billion. When the market shows signs of bearishness, is it the right time for the savvy investors to start accumulating assets? That’s typically not the moment to be caught napping.
And if the fear wasn’t already backfiring, here’s the kicker: over $10 billion in Ethereum shorts are now perilously close to liquidation. If ETH rallies to the $4,359 mark, it may initiate a traditional short squeeze, compelling bearish traders to quickly cover their positions. This would propel ETH higher. At that moment, it’s a complete overhaul. Market sentiment is leaning bearish, yet whales are actively accumulating assets, while a significant number of short positions are poised for liquidation. If ETH begins to gain momentum, we could see rapid developments unfold.
At press time, Ethereum was priced at $4,173, showing a slight rebound from the previous week’s decline. The RSI remained steady at 45, indicating that ETH was positioned in neutral territory. Meanwhile, reports indicated a reduction in bearish momentum, as the –DI line started to level off in relation to the +DI. Price action remained just beneath the 20 and 50-day EMAs, indicating resistance yet also hinting at the possibility of a breakout should buyers maintain their momentum. Bears are losing momentum, signaling that the market is poised for a transition.