The price of Ethereum (ETH) has been fluctuating narrowly around $2450, as traders await clarity on macro and technical events, making it difficult to decisively break through. In the past 24 hours, the second-largest cryptocurrency has fluctuated between $2400 and $2460, reflecting that despite the activity of whales and increasing institutional investor interest, the market remains indecisive. Moreover, whales have also increased their holdings of Ethereum, which can be seen as a bullish signal for the token.
According to Cryptoquant data, Ethereum whales have reached one of the highest holdings on record for this cycle. On the other hand, the number of active addresses surged from 289,275 to 515,432, indicating a significant increase in trader activity. Therefore, with the rise in volatility, the price of ETH may also be positively impacted.
Is a short squeeze imminent?
A short squeeze occurs when traders who short the token are forced to buy back at higher prices. This not only compensates for their losses but also helps the price to rise rapidly. Current on-chain data indicates that a substantial number of short positions have accumulated, which may pave the way for a rapid price increase.
The chart shows that in recent days, as the price approached the $2800 resistance level, a large accumulation of short positions occurred. This quickly led to a price drop, and now the price is attempting to rebound, risking a short squeeze. A substantial amount of liquidity has accumulated around the $2500 mark, so if the price breaks through that level, it could ultimately suppress the short positions.
Will the price of Ethereum (ETH) reach $3000?
The price of Ethereum has been fluctuating within a narrow range and recently experienced a significant drop during the correction. Nevertheless, the price has maintained strong support, paving the way to reach the resistance level. Additionally, trading volume has also been fluctuating, indicating that volatility is expected to increase substantially.
As shown in the chart, the price has rebounded from the Gaussian channel support level, indicating an excessive pullback in price. However, the CMF remains below '0', suggesting that the inflow of funds into the platform is declining. Therefore, Ethereum's price is expected to reach $2500 and may break through $2800 if market conditions are favorable. Otherwise, the price may continue to consolidate below the price range.
