Intraday traders have recently made significant short positions totaling $330 million, signaling a bearish outlook on the cryptocurrency market. Despite this, a crypto whale has withdrawn $5.27 million worth of ETH, indicating potential confidence in the asset’s future.
The decline in Ethereum and other cryptocurrencies can be attributed to U.S. President Donald Trump’s tariff announcement, which has imposed tariffs ranging from 10% to 34% on various countries. This has led to a sharp drop in the overall cryptocurrency market, with Ethereum dropping over 4.50% and trading near the $1,800 level. The $1,800 level is seen as a crucial point for determining future price levels.
Technical analysis suggests that Ethereum is on the verge of a significant price decline, with the asset forming a bearish cup and handle pattern on the daily timeframe. If ETH breaches the neckline and closes below the $1,770 mark, a significant sell-off could follow, potentially leading to a 15% drop to the next support level at $1,500.
The bearish trend of Ethereum is further supported by the fact that it was trading below the 200-day Exponential Moving Average (EMA) at press time. This signals a bearish trend and strengthens the overall negative outlook for the asset. Despite this, whales and investors seem to be taking advantage of the dip in prices by accumulating tokens.
A prominent crypto whale recently withdrew a significant amount of ETH from the Binance cryptocurrency exchange, utilizing a buy-the-dip strategy to average their ETH holdings at lower levels. This indicates that despite the ongoing price decline, some investors remain confident in the long-term potential of Ethereum.
On-chain metrics reveal that intraday traders are heavily betting on the short side, with over-leveraged positions at both $1,783 and $1,848 levels. These positions reflect a bearish market sentiment, with $330 million worth of short positions at the $1,848 level. Overall, the current market conditions suggest a challenging outlook for Ethereum and other cryptocurrencies in the near future.
In conclusion, the recent developments in the cryptocurrency market, including the tariff announcements and bearish technical indicators, have had a significant impact on Ethereum’s price. While intraday traders are heavily betting on the short side, a crypto whale’s withdrawal of ETH indicates confidence in the asset’s potential. It remains to be seen how Ethereum will navigate the current challenges and if it can reclaim its previous highs in the future.
