Ethereum Faces Aggressive Shorting As Taker Sellers Outpace Buyers By $350M Daily – Analyst
Ethereum, the second-largest cryptocurrency by market capitalization, had a lackluster performance in 2024, trailing Bitcoin and many altcoins throughout the year. However, as 2025 begins, Ethereum is starting to show signs of recovery, rising by more than 10% in less than a week. The early surge has reignited hopes among investors and analysts, who see the potential for a strong performance this year.
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Top analyst Maartunn recently shared insightful data highlighting the ongoing trend of aggressive shorting in the Ethereum market. According to Maartunn, taker sellers have been dominating the market, outpacing taker buyers by more than $350 million per day. This aggressive shorting may explain Ethereum’s underperformance in 2024, as continued selling pressure could dampen upward momentum.
With optimism in the new year, many believe this short selling trend may start to turn, providing Ethereum will regain its position as market leader. As altcoin leaders overcome challenges, the coming weeks will be crucial in determining whether this early rally marks the beginning of a more sustained uptrend. Investors are keeping a close eye on Ethereum, anticipating that a reversal of these bearish trends could lead to a stellar 2025 for the network.
Ethereum rises amid aggressive short selling trend
Ethereum is trying to break out of the 2024 highs, but a decisive breakout remains elusive. Recent price action suggests upside potential, with ETH rallying early in 2025. However, the path forward is unclear as heavy selling pressure continues to weigh on altcoin leaders.
top analysts Maartunn recently shared insightful data from CryptoQuantrevealing current market dynamics. Data shows that Ethereum is experiencing aggressive shorting, with taker sellers dominating trading activity. Over $350 million more sell-side pressure than buy-side activity is being recorded on a daily basis, creating a challenging environment for ETH to break out of the current range.
While this trend will depress prices in the short term, it cannot continue indefinitely. Market cycles often view this type of aggressive shorting as a precursor to a reversal, as sellers lose momentum and buying pressure begins to build. Long-term investors reportedly view this phase as an opportunity to profit from Ethereum’s relatively low price.
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The next few weeks will be crucial as Ethereum deals with these dynamics. A clean break above last year’s highs could mark the start of a broader rally, attracting new interest and potentially reversing the ongoing short trend. Currently, ETH is still at a critical juncture.
Price tests key levels
After a strong start to 2025, Ethereum is currently trading at $3,650 and gained significant traction at the start of the year. The price recently broke above the 4-hour 200 EMA, a technical indicator often seen as a key threshold for long-term trends, with impressive strength. ETH is currently testing the 200 moving average on the same time frame, and if this level is reclaimed and used as support, the bullish trend could be confirmed.
A strong daily close above the 200-day moving average would solidify Ethereum’s upward momentum, potentially paving the way for a massive rally to challenge and surpass last year’s highs. The move could revive market sentiment and attract additional buying pressure, pushing Ethereum to new levels in the short term.
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However, the bullish outlook is not without risks. If Ethereum fails to hold the 200-day moving average support, the market may encounter a new wave of selling pressure. This could push ETH back to lower levels, eroding recent gains and prolonging its battle to regain upward momentum.
Featured image from Dall-E, chart from TradingView
