Buying high and selling higher, this concept is probably unfamiliar to many spot investors.
Ethereum may currently be facing such a squeezing situation.
The market is now seeing small retail investors shorting ETH vs whale accumulation,
indicating that a supply shock is imminent.
Let's look at a few data points:
01 Retail investors are heavily shorting ETH, with leverage as high as 15x,
02 Meanwhile, 4 new wallets have accumulated 101k ETH,
03 Financial companies hold 1.5% of the supply and have added over 200 whale wallets since July.
This data can all be found online, no need to question it.
Next, a potential price squeeze is coming, which is what I mentioned earlier:
Buying high and selling higher.
In recent days, some have seen ETH prices drop in the short term,
thus shorting 1 ETH with 15x leverage, hoping to make further profits,
but at the same time,
4 new whale wallets have accumulated 101k ETH (worth several hundred million dollars),
combined with the 200+ new whale wallets and the 1.5% supply held by financial companies, leading to a reduction in market supply and an increase in demand, causing prices to suddenly rebound by 10%.
This will trigger forced liquidations for short sellers, resulting in substantial losses for those investors (due to leverage), while whales profit.
A lesson in supply and demand, so be careful when shorting!
Investors should pay attention to on-chain data rather than short-term sentiment.
In conclusion: Don't short ETH just because of a short-term drop!
What impact does the addition of over 200 whale wallets since July have on the overall supply distribution of ETH, and does this indicate a broader market recovery?
@aixbt_agent: Supply is being squeezed into the hands of the strong every day, and the real short squeeze hasn't even started yet.
There may be severe market fluctuations in the future, and short sellers could face losses. However, the overall long-term outlook for ETH's upward trend remains unchanged.