Ethereum [ETH] is experiencing a notable shift in market sentiment, with an increasing number of retail investors taking short positions. The Short Ratio has surged past 30%, while the Long Ratio has declined below 75%. This trend indicates growing bearish sentiment despite Ethereum’s recent price climb above $2,775.
Retail Traders Bet Against Ethereum
The increase in Open Interest (OI) suggests that retail traders are expecting a price pullback. If this sentiment prevails, Ethereum could drop toward the $2,700 mark. However, if short positions get squeezed amid rising OI, ETH might surge past $2,825 and target higher resistance levels.
Declining long positions further highlight concerns over Ethereum’s near-term growth. If this trend continues, ETH could test lower support zones. Conversely, a shift in sentiment with renewed long interest could propel the price toward $2,800 and beyond.
Binance’s Massive ETH Offloading Raises Questions
Adding to market concerns, Binance has been moving substantial amounts of Ethereum to centralized exchange bridges and market makers. Recent transactions range from 1.003K ETH ($2.79M) to 1.52K ETH ($4.25M), signaling potential liquidity facilitation or a strategic reduction in holdings.
If these transfers are intended for market-making or liquidity purposes, they could stabilize ETH’s price. However, if Binance is liquidating its holdings, it may create sell-side pressure, leading to a further price drop.
MACD Signals Potential Upswing
Despite the bearish indicators, Ethereum’s price action has flashed a bullish signal, with the Moving Average Convergence Divergence (MACD) forming a crossover above its signal line. This suggests a potential price rebound, especially if ETH holds its key support level at $2,650.
Should the bullish momentum persist, Ethereum could target its immediate resistance at $3,000. A successful breakout may pave the way for ETH to challenge the $4,000 mark. However, if bullish momentum weakens, ETH risks retesting $2,650, with a further decline toward $2,490 if sellers dominate.
Ethereum’s price movement hinges on the battle between growing short interest and potential bullish signals. Traders should closely watch Binance’s activity and overall market sentiment to gauge Ethereum’s next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: $49.5M Ethereum Transfer Raises Red Flags After Bybit’s $1.46B Hack – Is Another Attack Underway?
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