Whale Activity and Negative Sentiment Collide
Ethereum (ETH) may be approaching a pivotal breakout, as bearish sentiment clashes with signs of growing bullish momentum. At press time, ETH was trading at $4,173, recovering modestly from last week’s dip. The Relative Strength Index (RSI) hovered at 45, suggesting neutral momentum, while price action lingered just under the 20 and 50-day EMAs—potential resistance points, but also launchpads if buyer demand increases.
According to on-chain data, over $10 billion in Ethereum short positions are now teetering on the edge of liquidation. If ETH breaks above the key $4,359 level, it could ignite a short squeeze—a rapid rally triggered by forced short-covering.
“People are bearish, whales are buying, and there’s a mountain of shorts just waiting to get liquidated,” AMBCrypto noted. In such conditions, even a modest upward push could cascade into aggressive buying pressure, sending ETH sharply higher.
Smart Money Signals a Shift
Meanwhile, major investors appear to be positioning for a rally. On-chain activity revealed that Bitmine recently accumulated 234,846 ETH, worth approximately $963 million, raising their total holdings above $10.8 billion. Moves like this suggest institutional confidence is building even amid market uncertainty.
Indicators support the narrative of a shifting trend. The Directional Movement Index (DMI) shows the –DI line beginning to flatten, hinting at weakening selling pressure. Funding rates have remained negative, signaling that traders are still paying to hold shorts—a pattern that has historically preceded bullish reversals.
