Traders Solidify Bearish Expectations on Ethereum—Should You Consider Selling ETH Now or Stack Up More
As prices continue to stay within a narrow range, Ethereum, the second largest token, faces anger from market participants. When Bitcoin price is above $101,000 and raises new ATH at $109K $109K, Ethereum prices have struggled to exceed $3,500 since the beginning of the year. Since prices are constantly forming lower highs and lows, the question is whether it is time to sell ETH or a good time, as the price is expected to fly beyond the current ATH.
In recent updates, ETH’s short positions have now increased by more than 40% in just one week, more than 500% since November 2024. The platform has never recorded such crazy short-term levels, so it suggests that hedge funds may know something that might be aware of retail traders do not. Let’s break it down,
- Ethereum experienced extreme positioning effects in the first few days of February, falling 37% in a few hours with the trade war, squeezing more than $1 trillion.
- In December, ETH had more than $2 billion in new funds, with record weekly inflows of more than $854 million. But hedge funds are betting on a surge in ETH and limit breakout
- The token witnessed the number of around Trump’s inauguration and the latest crash earlier this month. But even after a week, price action failed to recover from the gap lower
- Additionally, during the outbreak of Bitcoin and other cryptocurrencies, ETH prices were trapped in a range
- Second, Ethereum is largely debated as security and is expected to be suppressed under Trump’s administration
- Other potential reasons include market manipulation of harmless crypto fences and bearish outlook for Ethereum itself
Then what is next? What are the expectations for Ethereum price rally?
this Ethereum Price The continued firm adherence to its rising support since 2023 shows that the Bulls are very alert at the price rally. The token has experienced over $400 million inflows of ETFs, which flashes a major bullish signal. Meanwhile, some major updates are coming next month, confirming the bullish trajectory. On the other hand, Trump is reportedly buying and holding ETH and ETH, so once the price rises above $4,000, the breakout can be crazy.
In the long run, ETH prices are trained along the uptrend line, which is a strong support. However, a 50-day weekly MA ($3150) is the main price range that needs to be achieved and may further push the level to upper milestones. However, a 200-day weekly MA provides a strong foundation, so the rebound seems to be on the horizon. Meanwhile, the RSI flashes uncertainly as it may be a bullish divergence or a lower high. Therefore, weekly closures may be broader and clearer for Ethereum (ETH) prices, which may determine whether the token may rise above $3200 or stay below the range.
