After facing resistance above $2700, Ethereum [ETH] saw a three-day bearish retracement. However, there is speculation that this downtrend may not last long.<\/p>\n
An analysis by CryptoQuant indicated a significant increase in short positions for ETH above the $2,700 mark.<\/p>\n
This development validated the expected pullback due to previous price resistance. Currently, selling pressure has surpassed demand, leading to a price drop to $2584 at the time of writing.<\/p>\n
The analysis cautioned about the surge in short positions and the growing interest in leverage, which could potentially trigger a short squeeze scenario for ETH.<\/p>\n
Since September 6th, Ethereum’s Open Interest has been on the rise, signaling a renewed interest in the derivatives market.<\/p>\n
Notably, ETH’s estimated leverage ratio recently reached levels not seen since early July.<\/p>\n
An increase in excessively leveraged short positions could create an advantageous situation for influential holders to disrupt the market dynamics by increasing prices. But what are the chances of this occurrence?<\/p>\n
A key indicator of a forthcoming short squeeze would be if major holders began accumulating assets aggressively.<\/p>\n
Based on data from IntoTheBlock, the inflow of ETH into large addresses surged from 194,280 coins on October 19th to 335,870 coins on October 22nd.<\/p>\n
This surge highlighted the accumulation by significant holders during the price decline.<\/p>\n
In contrast, outflows from large holders increased from 122,380 ETH on October 20th to 267,180 ETH on October 22nd.<\/p>\n
This indicated that the amount of ETH sold slightly exceeded the net purchases, aligning with the bearish market trend during the same period.<\/p>\n
Despite bearish sentiment prevailing, major holders acquired more ETH than they offloaded. In the past 24 hours alone, they purchased 68,690 ETH, valued at over $177 million.<\/p>\n
This data implies that influential holders might be initiating moves to drive ETH prices upward.<\/p>\n
These developments hint at a potentially eventful latter part of the week for Ethereum, potentially marked by a resurgence and an effort to surpass the current resistance levels.<\/p>\n
Ethereum remains susceptible to market volatility, with increasing Open Interest levels and growing appetite for leverage.<\/p>\n","protected":false},"excerpt":{"rendered":"
After facing resistance above $2700, Ethereum [ETH] saw a three-day bearish retracement. However, there is speculation that this downtrend may not last long. An analysis by CryptoQuant indicated a significant increase in short positions for ETH above the $2,700 mark. This development validated the expected pullback due to previous price resistance. Currently, selling pressure has<\/p>\n","protected":false},"author":1,"featured_media":28343,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-28342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/28342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/comments?post=28342"}],"version-history":[{"count":2,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/28342\/revisions"}],"predecessor-version":[{"id":28345,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/28342\/revisions\/28345"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media\/28343"}],"wp:attachment":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media?parent=28342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/categories?post=28342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/tags?post=28342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}