Ethereum traded at $2,652 during Monday’s market session, remaining below the $2,700 threshold but still sustaining a constructive technical framework. The asset, recognized as the second-largest cryptocurrency by market capitalization, continues to retain support from its 50-day, 100-day, and 200-day exponential moving averages (EMAs), which sit between $2,260 and $2,430.
Technical indicators and support levels
Current momentum indicators point to a moderately optimistic but cautious sentiment in the Ethereum market. The Relative Strength Index (RSI) registered at 59, reflecting upbeat trader sentiment without signaling an overbought condition.
The Moving Average Convergence Divergence (MACD), however, has dipped slightly into negative territory, hinting at a pause in positive momentum. Despite this shift, analysts have noted that the uptrend is likely to continue as long as Ethereum trades above its EMA support structure.
Key support levels for ETH include the $2,500 area, with the 50-day EMA providing a reinforced floor at $2,425. Additional technical cushioning is found near the 100-day and 200-day EMAs at $2,265 and $2,259, respectively. If selling pressure increases, broader support could be tested at $2,000 and $1,385. On the upside, the $3,000 psychological threshold has emerged as a significant resistance point for traders seeking further gains.
Growing bearish sentiment and short positioning
Crypto market analysis platform Coin Bureau drew attention to the recent surge in bearish sentiment among traders on Bitfinex. Over a two-week span, open short positions on ETH exploded by roughly 13,000%, rising from around 771 ETH to over 101,000 ETH. Coin Bureau described this as an “extreme buildup” in bearish positioning, and noted the potential for a short squeeze if the price begins to climb.
Ethereum bears have significantly increased their positions on Bitfinex over the past two weeks, with short interest jumping from 771 ETH to more than 101,000 ETH, representing a nearly 13,000% surge.
A short squeeze occurs when heavily shorted assets rise in price, forcing those betting against them to cover positions by purchasing the asset, often amplifying upward momentum.
Mini dictionary: Bitfinex, a major centralized cryptocurrency exchange known for high liquidity and derivatives trading, is frequently monitored for significant market moves by institutional and advanced retail traders.
Large holders accumulate amid whale activity
While bearish sentiment built up among short-sellers, on-chain data has shown an increase in whale accumulation. Crypto analyst Ali Charts reported that transactions exceeding $1 million in value surged from 1,202 to 7,113 over seven days, signaling a major uptick in large-scale market participation. During the same period, wallets with substantial balances collectively added more than 320,000 ETH, an amount valued at approximately $864 million at current prices.
Large-scale Ethereum transactions have jumped by nearly 500% in one week, reflecting strong activity from whales accumulating over 320,000 ETH, or $864 million.
| Metric | Previous Value | Current Value | Change |
|---|---|---|---|
| ETH Short Interest (Bitfinex) | 771 ETH | 101,000 ETH | ↑13,000% |
| Large Transactions (>$1M) | 1,202 | 7,113 | ↑492% |
| Whale Accumulation | — | 320,000 ETH | $864 million added |
Analysts cautioned that high-value transactions do not always signal net buying, as these can also involve exchange transfers or custodial movements. Nevertheless, the volume and scale of recent accumulation have stood out during Ethereum’s current phase of consolidation.
Key resistance awaits as trading consolidates
Ethereum now approaches a significant supply and resistance zone in the $2,722 to $2,822 range. On-chain data indicates that over 13.3 million ETH changed hands around this level historically, suggesting many holders may look to sell as the price returns to this range.
Should ETH breach this resistance, analysts identify $2,970 and $3,366 as the subsequent bullish targets. For now, the prevailing market structure is characterized by heightened accumulation from major holders but strong resistance overhead, with market observers watching to see whether buying power can absorb anticipated selling pressure near $2,800.
Ethereum is currently navigating a market defined by both aggressive short-selling and significant long-term accumulation, leaving its near-term price action finely poised.
