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- Ethereum (ETH) has recorded its largest bearish bet in history as traders increased short positions by 500% since November 2024.
- An analyst believes that the ETH price could reach $10k this season and labels this position as a “programmed milestone.”
Ethereum’s (ETH) effort to break out of the upper boundary of the $3000 and the $2400 range was severely intercepted by the broad market liquidation, forcing the asset to make a to-and-fro movement with a 24-hour support range of $2,520 and $2,673.
At press time, the asset had declined by 0.68% in the last 24 hours, trading at $2,647 with a market dominance of 10%. The daily liquidation had also increased to $44.65 million, out of which $30 million was in long liquidation, per Coinglass data. However, the 24-hour trading volume remains 19.3% up as $19.66 billion changes hands.
Current Traders’ Sentiment
Taking a critical look at the ETH’s price and the trader’s current behaviour, we found a very interesting relationship as the short positions of the asset have significantly increased by 40% in the last seven days. This has extended traders’ short positions by a whopping 500% since November 2024. According to data, this is the largest bearish bet on ETH in history. This also puts the asset in a “make or break “ situation. A similar occurrence on February 2 saw the assets decline by 37%.
Subjecting ETH to critical analysis, a renowned crypto analyst, Ali Martinez, disclosed that ETH’s most crucial support level could be found at $2,600. Per his observation, a perfect hold above this position could lead to a sharp turn of sentiment and a subsequent rebound to $3000 and $4000. As highlighted in our previous article, Martinez believes that ETH stands a good chance of hitting $7000 in the bull run.
Analysts Speak on Ethereum (ETH)
According to Tron founder Justin Sun, ETH could only rise to a significant margin when the Ethereum Foundation implements three crucial strategies. As detailed in our last news piece, Sun suggests that a tax be introduced on the Layer 2 solutions to raise $5 billion annually for ETH repurchase and token burn.
For crypto analyst Ted Pillows, the current market situation is not anything new, as the asset is merely rhyming the 2020 move. According to him, ETH recorded a similar capitulation before embarking on its biggest move to an all-time high price at that time. Recounting some of the attacks on the asset, Ted Pillows highlighted that many labeled ETH as finished.
Aligning this with the current cycle, the analyst believes that the asset could hit $10k this cycle. According to him, this is a “programmed milestone,” and the 90% decline in gas fees could be a main catalyst. Another analyst called Titan of Crypto also believes that the current ETH cycle has a striking resemblance to the third cycle of Bitcoin.
In his post, this analyst pointed out that Bitcoin consolidated within a symmetrical triangle before breaking out to a significant level. Currently, ETH is facing a crucial resistance level at $3000. Failure to break above this level could lead to an extended consolidation.
In a recent update, we also examined the decoupling nature between Bitcoin and Ethereum, creating a blurry picture of the future price of the latter. According to LookOnChain data, ETH has recently traded lower than the subsequent events when Bitcoin reclaimed the $100k territory. Fascinatingly, others also believe that this situation could prevent the occurrence of the much-anticipated altseason.
