- A well-known trader has taken a short position of $60.8 million on Ethereum amid its recent profits.
- Ethereum is finding it hard to surpass the resistance area at $2,750, which caused past price rejections.
- Whales continue to buy ETH in huge quantities, as analysts indicate the potential for consolidation or decline.
Ethereum’s price has edged above $2,700, triggering cautious optimism among traders. However, a mix of whale accumulation and renewed short interest from a high-profile trader is keeping sentiment balanced. With resistance forming at $2,750, Ethereum’s next move could set the tone for the broader altcoin market.
According to on-chain analytics provider Lookonchain, smart trader 0xcB92, who has already made $5.18 million by trading Ethereum, has reopened a large short position. This trader is now shorting 21,963 ETH, worth $60.8 million, with a liquidation price of $2,948. The current position has an unrealized gain of 187,000.
This is the same wallet that accurately called the decline of Ethereum on June 6 after turning short right before the price correction. The time factor has given more credence to the bearish determination, particularly at historically rejected resistance levels.
Whales Accumulate While Analysts Highlight Resistance
In spite of the near-term positioning, massive ETH accumulation continues. In the past day, Wallet 0xc097 has removed 13,037 ETH (approximately $35.5 million) through Binance. Abraxas Capital, a crypto hedge fund, was next with 44,612 ETH (approximately $123 million) withdrawn on Binance and Kraken.
Analyst Ali Martinez cautioned that a bullish confirmation requires a convincing break above the $2,750 resistance. His analysis indicates that Ethereum has repeatedly been unable to accomplish this level, and retracements have occurred after each try since mid-May. Martinez identified a range running horizontally between $2,380 and $2,750, indicating that Ethereum may retest support at around $2,500 or $2,380 without a decisive breakout.
Crypto Caesar shared a similar sentiment, calling the $2,7002,750 area a “red level.” In his analysis, any price action above this range may invert the structure to bullish and allow altcoin rallies to occur.
Technical Indicators Suggest Limited Momentum
The ETH/USD daily chart shows that Ethereum is changing hands at $2,792, having declined by 0.86% after reaching an intraday high of $2,835. The Relative Strength Index (RSI) is at 65.35, which is close to the overbought territory. The risk of a reversal will occur when the buying pressure dissipates.
The MACD indicator shows a close difference between the MACD line (87.1) and the signal line (82.0), indicating limited momentum as the histogram bars are weak. ADX is at 22.7, which still shows that the trend strength is low, and consolidation may continue.
Peter Brandt, a veteran analyst, pointed out a break out of a descending channel that took place in April. He considers the support trendline at around $ 2,390 critical. A breakout above this line would put Ethereum at $4,000; a decline beneath this line might bring it to $2,150, representing a potential 48% gain. A tweet by Brandt reading, “Every dog has its day -woof woof $ETH” alluded to a bullish possibility.
Ethereum surged 3.5% in the last 24 hours and confirmed a breakout above $2,700, which is a positive indication of regenerated interest, yet the crucial level is at $2,750. Traders could be reserved without a huge volume and a daily close above this area. Until confirmed, Ethereum’s trend sits on a knife’s edge, trapped between bullish accumulation and experienced traders betting against it.
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