Ethereum whales are fading into strength, while perps are leaning short, triggering liquidation cascades and trapping late longs in a rinse-repeat cycle just below the breakout level. The price action hints at a deliberate effort to keep Ethereum (ETH) boxed in under $4k, creating a loop of spot buying followed by aggressive short loading.
The engineered range of Ethereum is evident in the recent data. Since July 21st, ETH ETFs have attracted close to $1.9 billion in inflows, causing exchange reserves to drop from 8.9 million to 8.7 million ETH. This significant supply squeeze through spot venues, coupled with the steady demand from ETFs, has not been enough to push ETH past the $4k mark, leaving it at $3,871 at the moment.
Moreover, the number of whale wallets holding 1k+ ETH has decreased from 4,897 to 4,797 in the past week, indicating a net loss of 100 high-cap holders. This decline, combined with a -0.21% weekly Funding Rate on Binance, suggests that whales are fading into strength while perps are leaning net short, setting the stage for a coordinated unwind.
In just 24 hours, over $100 million in Ethereum long positions were liquidated, leading to a cascade that favored aggressive short sellers. This distribution near the top traps late longs, causing the price to drop rapidly, allowing smart money to capitalize on the gains. As a result, Ethereum finds itself stuck in a cycle of liquidity grabs and failed breakouts.
Ethereum is now teetering at the edge of macro volatility, sitting just 3.3% below the $4k breakout zone. With the FOMC preparing to outline its H2 policy, ETH bulls are anticipating a rotation, especially with the ETH/BTC pair showing a 1.4% intraday increase. The cooling Bitcoin Dominance (BTC.D) and rising spot demand and institutional flow further support the potential for a breakout.
However, if smart money continues to distribute into strength and lean short at the top, a local peak near $4k could trigger another round of long-side liquidation cascades. Despite appearances of building a launchpad for liftoff, Ethereum may face a third rejection at the resistance level if the necessary buying pressure fails to materialize soon.
In conclusion, Ethereum’s price movements are showing signs of orchestrated manipulation, with whales and perps working in tandem to keep the price below $4k. The market dynamics suggest that caution is warranted, as the potential for volatile swings remains high. A recent study published in the Journal of Health Psychology has shed new light on the impact of positive thinking on overall health and well-being. The study, conducted by a team of researchers from the University of California, Berkeley, found that individuals who engage in positive thinking practices experience lower levels of stress, reduced inflammation, and better overall physical health.
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