Ethereum is teetering on the edge of a potential short-squeeze showdown as leverage levels soar, with many traders betting on a price decline.
The rising Estimated Leverage Ratio indicates a surge in high-stakes short positions, suggesting that many are expecting a drop in $ETH prices. However, if Ethereum can push past the critical $2.7K resistance level, it could trigger a wave of short-covering, sending prices sharply upward.
Despite this possibility, market sentiment remains largely bearish. The Ethereum Foundation recently sold 100 $ETH for 252,491 $DAI just 10 minutes ago, continuing a trend of gradual sales.
In 2024 alone, the Ethereum Foundation has 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 weekly batches during these two months.
The Ethereum Foundation further sold 100 $ETH for 252,491 $DAI ~10 minutes ago.
So far in 2024, the Ethereum Foundation has sold 4,066 $ETH for $11.22M at an average price of $2,760. This includes 1,250 $ETH ($3.07M) sold in September and 300 $ETH ($759K) sold in October, with… https://t.co/NgKpgUWY98 pic.twitter.com/uBuQ1Ektjd
— Spot On Chain (@spotonchain) October 23, 2024
Ethereum Average Transaction Fees Drops To Just $1.63
Ethereum’s average transaction fees have dropped to just $1.63, a level low enough to historically encourage traders to increase their transfer activity. These reduced fees, compared to previous years, could influence trader behavior, increasing transaction frequency as the blockchain nears its 10-year anniversary.
💸 Ethereum's average fees sit at just $1.63, reaching an affordable level that historically has encouraged traders to increase their transfer frequency.
ETH network fees have changed drastically over time as the blockchain nears 10 years of existence. But this 4-tier visual can… pic.twitter.com/C9Ul2lvoVE
— Santiment (@santimentfeed) October 22, 2024
Additionally, on October 22, Ethereum’s spot ETF saw a net inflow of $11.94 million, further indicating growing interest in the asset despite the prevailing bearish market mood.
Bitcoin spot ETF had a total net outflow of $79.0905 million on October 22, the first net outflow after the net inflow in the past 7 days. Ethereum spot ETF had a net inflow of $11.94 million on October 22. https://t.co/59u0BnDSW8
— Wu Blockchain (@WuBlockchain) October 23, 2024
As Ethereum’s network fees remain low and leveraged positions build up, all eyes are on the $2.7K resistance level. If broken, a short squeeze could rapidly change the current bearish tone and ignite a strong upward price movement.
Ethereum is on the brink of a short-squeeze showdown as leverage levels soar with traders banking on a price drop.
The Estimated Leverage Ratio's climb suggests a surge in high-stakes short positions.
If $ETH breaks past the $2.7K resistance, it could trigger a wave of frantic… pic.twitter.com/uM5AhJYdWr
— Kyledoops (@kyledoops) October 23, 2024
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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