Is ETH Price Aiming for a Bearish Comeback?
Ethereum (ETH) is currently undergoing a merger, with its price fluctuating between $2,700 and $2,600 over the past three days. Even though price movements are limited to this range, activity in the Ethereum derivatives market has surged, with the increase in positions of short sellers.
Ether ETP exceeds inflows of Bitcoin
Ethereum’s price has been trying to exceed the $2,700 gain over the past 24 hours; however, it faces a strong bearish domination. Coinglass data shows that Ethereum witnessed nearly $45.64 million in liquidation, with buyers liquidating positions worth about $28.46 million.
However, Ethereum ETP dominates more than Bitcoin. According to a report by Coinshares, Ether ETP has increased inflows by 95% compared to Bitcoin ETP, attracting $793 million in the past week.
This rise in ETHER ETP activity was below $2,700 on February 6, triggering a “mass purchase”, as pointed out by Coinshares Research Director James Butterfill.
This marks the first time in 2025 that surpassed Bitcoin ETP in terms of inflows, with similar events occurring at the end of 2024.
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However, the ether price may be because hedge funds raise their bearish position on altcoins. Short positions in Ethereum have soared 40% in just one week, reaching 500% since November 2024. In the history of Ethereum, this short sales level of Wall Street hedge funds is not normal, far exceeding any previous record.
One factor that contributes to traders’ bearish sentiment towards ETH is the overall decline in the network trend. In addition to the return to the merged level of supply, activity on the Ethereum network has also declined significantly. In February, the total value of diversified financing (DEFI) (TVL) fell to a February low of $56.8 billion, a decline underlined.
What’s next for ETH price?
Ethereum’s price is working to maintain its momentum of around $2,700, resulting in a merger. Currently, Bitcoin is facing a bullish domination as buyers aim to surpass the direct FIB channel. Currently, ETH is priced at $2,677, soaring 2.1% over the past 24 hours.
The ETH/USDT trading pair struggled with $2,700, which could present some challenges. If it can remain at this level, it will be beneficial for the buyer. The price may then attempt to exceed $3,000 and potentially priced around $3,200.
On the other hand, if the ETH price rejects the decline of the trend line, we may see a strong correction. Then, a bearish merger of $2500 may be cashed. As the RSI trend line hovers below the midline, there may be a continued purchase demand of $2,700-3,000.
