- Whale Buying vs. Hedge Fund Shorts: ETH saw $205 million in inflows last week amid strong whale buying, but hedge funds ramped up shorts, increasing net short exposure to -$1.25 billion.
- Bullish Flag Formation: ETH dropped below $2,530 but could rally to $3,250 if it bounces off $2,260 support and breaks the flag’s resistance.
- Downside Risks: A decline below $2,110 could push ETH toward $1,688, with further downside to $1,500 if bearish momentum intensifies.
Ethereum (ETH) is trading around $2,500 on Monday amid mixed signals from on-chain metrics. Despite strong buying pressure from whales and steady inflows into ETH products, hedge funds and traders are ramping up short positions, creating a tug-of-war between bulls and bears.
Hedge Funds Ramp Up Shorts Amid Bullish ETH Inflows
Ethereum products saw $205 million in inflows last week, buoyed by renewed investor optimism following the successful Pectra upgrade and changes at the Ethereum Foundation, per CoinShares. This buying wasn’t limited to US spot ETFs but was spread across global ETH product providers. Meanwhile, whale wallets holding 10K to 100K ETH added 670K ETH in the past five days, signaling intense buying pressure.
Despite the positive inflows, ETH’s price slipped by 1% last week, as short positions in Ethereum futures climbed. Binance’s ETH Net Taker Volume indicates growing short interest, and at the CME, hedge funds increased their short exposure by $880 million, bringing their net short position to -$1.25 billion.
Price Forecast: Bullish Flag vs. Bearish Pressure
Ethereum saw $235.41 million in futures liquidations in the past 24 hours, with $170.30 million in longs and $65.10 million in shorts. Over the weekend, ETH dropped below $2,530 after facing resistance at the 200-day SMA, forming a descending trendline in a potential bullish flag pattern.
If ETH bounces off the $2,260 support and breaks through the flag’s resistance, it could target the $3,000 psychological level and potentially test $3,250. However, a sustained decline below $2,110 risks a drop to $1,688, with the bearish scenario extending to $1,500 if the daily candlestick closes below this key support.
