Ethereum is teetering on the brink of a potential short squeeze showdown as leverage levels skyrocket and many traders bet on the price falling.
The increase in the estimated leverage ratio indicates a surge in high-stakes short positions, suggesting that many are expecting the $ETH price to decline. However, if Ethereum can break through the key $2.7,000 resistance level, it could trigger a wave of short covering and send the price skyrocketing.
Despite this possibility, market sentiment remains bearish. The Ethereum Foundation recently sold $100 ETH for $252,491 DAI just 10 minutes ago, continuing the trend of gradual selling.
In 2024 alone, the Ethereum Foundation offloaded 4,066 $ETH for approximately $11.22 million, at an average price of $2,760. This includes sales of $1,250 ETH ($3.07 million) in September and $300 ETH ($759,000) in October, with small batches occurring weekly during these two months .
Ethereum Foundation sold 100 more $ETH 252,491 items $DAI ~10 minutes ago.
So far in 2024, the Ethereum Foundation has sold 4,066 pieces $ETH $11.22 million at an average price of $2,760. This includes 1,250 $ETH ($3.07 million) 300 units sold in September $ETH ($759,000) goes on sale in October and… https://t.co/NgKpgUWY98 pic.twitter.com/uBuQ1Ektjd
— Spotonchain (@spotonchain) October 23, 2024
Ethereum average transaction fees drop to just $1.63
Ethereum's average transaction fees have fallen to just $1.63, historically low enough for traders to increase their remittance activity. These lower fees compared to previous years may impact trader behavior and increase trading frequency as blockchain approaches its 10th anniversary.
💸 Ethereum's average fees are just $1.63, making it affordable and historically encouraging traders to increase the frequency of their transfers.
As blockchain approaches its 10th anniversary, ETH network fees have changed significantly over time. However, this 4-layer visual… pic.twitter.com/C9Ul2lvoVE
— Santiment (@santimentfeed) October 22, 2024
Additionally, the Ethereum Spot ETF saw net inflows of $11.94 million on October 22nd, indicating increased interest in the asset despite the overall bearish mood of the market.
The Bitcoin Spot ETF had net outflows of $79.095 million on October 22nd, the first net outflow following the net inflows of the previous seven days. On October 22nd, the Ethereum Spot ETF had net inflows of $11.94 million. https://t.co/59u0BnDSW8
— Wu Blockchain (@WuBlockchain) October 23, 2024
With Ethereum network fees remaining low and leveraged positions piling up, all eyes are on the $2.7,000 resistance level. If this breaks, a short squeeze could quickly change the current bearish tone and trigger a severe price rally.
Ethereum is on the brink of a short squeeze showdown as leverage levels soar as traders expect the price to fall.
The increase in estimated leverage ratios suggests a surge in high-stakes short positions.
if $ETH A breakout of the $2.7,000 resistance could spark a wave of enthusiasm… pic.twitter.com/uM5AhJYdWr
— Kyle Doops (@kyledoops) October 23, 2024
Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.
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