The Ethereum (ETH) price is currently trading in a tight range near $2450, showing signs of indecision as traders await clarity from both macro events and technical developments. Despite this, there are positive signals for the second-largest cryptocurrency in terms of whale activity and institutional interest. Ethereum has been fluctuating between $2400 and $2460 over the past 24 hours, indicating a lack of clear direction.
Whales in the Ethereum market have been accumulating the token at one of the highest rates ever seen in the current cycle. Additionally, the number of active addresses has spiked significantly, from 289,275 to 515,432, suggesting a surge in trading activity. This rise in volatility could potentially have a positive impact on the price of ETH in the near future.
One interesting development to note is the possibility of a short squeeze in the Ethereum market. A short squeeze occurs when traders who have bet against the token are forced to buy back at a higher price, leading to a rapid increase in price. On-chain data indicates that a large number of short positions have been accumulated, which could set the stage for a sharp price increase.
The chart shows a significant buildup of short positions as the price of Ethereum approached the $2800 resistance level. This resulted in a quick decline in price, and now that the price is attempting to recover, there is a risk of these shorts being liquidated. With a substantial amount of liquidity around the $2500 level, a break above this level could trigger a squeeze and push the price higher.
Looking ahead, the question on many traders’ minds is whether the Ethereum price will reach $3000. Despite recent fluctuations, the price has managed to hold above a strong support level, indicating a potential move towards resistance. Additionally, trading volume has been increasing, suggesting a rise in volatility.
The price of Ethereum has bounced back from the support of the Gaussian channel, which indicates an oversold condition. However, the Chaikin Money Flow (CMF) indicator remains below zero, signaling a decrease in money flow into the platform. It is expected that the price of Ethereum will reach $2500 in the near term, with a potential breakout above $2800 if market conditions are favorable. Otherwise, the price may continue to consolidate within the current range.