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▲ Ethereum (ETH)/ChatGPT generated image
As Ethereum (ETH) short positions are concentrated above $2,150, the defense of the $2,000 level has emerged as a trigger for a short-term rebound.
According to crypto media outlet Cointelegraph on May 28 (local time), Ethereum is under pressure after failing to recover the $2,150 resistance level, but open interest increased by approximately 350,000 ETH in one day. As open interest increased during a price decline, the possibility of new short positions entering the market has been highlighted.
Cointelegraph reported that bearish positions worth over $1.5 billion are concentrated above $2,150. Analysts suggest that if the $2,000 support level is maintained, a short squeeze could occur, causing the price to quickly return to the liquidity zone above $2,150.
Crypto trader Ardi said, “Ethereum will soon head below $2,000. We have already seen a 20% correction from the peak, and the price has completely broken out of the ascending channel.”
According to Velo data, Ethereum's funding rate remained strongly positive at 0.0049% this month. The cost of maintaining long exposure in a bear market, combined with an increase in short positions, has intensified a two-way leverage clash.
The exit of medium-sized holders is also clear. According to CryptoQuant, the balance of wallets holding 100 ETH to 1,000 ETH decreased from approximately 16.2 million ETH at its peak in 2023 to about 8.75 million ETH. In contrast, the balance of large wallets holding 10,000 to 100,000 ETH increased by approximately 30% over the past year, from 14.7 million ETH to 19 million ETH.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*
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