- Ethereum saw $38 million in short liquidations as it briefly reclaimed $2,000, while whales continued opening large bearish positions.
- Retail traders pushed demand, but technical indicators suggest ETH could fall below $2,000 again.
Ethereum [ETH] recently saw $38 million in short positions liquidated after reclaiming the $2,000 mark. Despite this, whale activity shows bearish bets could keep pressure on ETH.
After holding below $2,000 for three days, ETH briefly touched $2,092. At the time of writing, it traded at $2,059, reflecting a slight daily gain of 0.46%. The short-lived rebound highlights ongoing market volatility.
Whales Open Aggressive Short Positions
Data from CoinGlass shows a surge in short liquidations totaling $38 million, while longs accounted for $31 million. Despite this, some whales remain bearish.
A notable example is a whale who deposited $4.89 million into HyperLiquid and opened a 20x leverage short position on 9,887 ETH, worth $20 million. Such positions indicate that whales anticipate a price drop, even as the short liquidation rate rises.
Retail Traders Show Strong Demand
Interestingly, retail traders are taking the opposite side of whales. CryptoQuant data shows sustained retail buying around the $2,040 and $1,900 price levels. Retail order sizes have increased, signaling strong participation in the Futures market.
The Ethereum Long Short Ratio rose above 1.008, with Binance and OKX averaging 1.7. This indicates most market participants are taking long positions, reflecting a disconnect between whale sentiment and retail traders.
Market Indicators Suggest Limited Upside
Despite ETH reclaiming $2,000, technical indicators point to continued bearish pressure. The MACD remains negative at -19, showing that downside moves outweigh upside momentum.
Upside Downside Volatility (UDV) also confirms the trend, with upside volatility at 2.07 and downside at 2.9. Sellers are more aggressive, suggesting any rebound may be short-lived.
What’s Next for Ethereum?
If bearish sentiment persists, ETH could fall below $2,000, with immediate support at $1,900. However, if demand in derivatives increases, ETH might hold $2,000 and aim for $2,225.
Traders should monitor whale activity and retail participation closely, as these factors may determine the next significant move for Ethereum.
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