+34
Ethereum’s rising shorts could become fuel for a breakout if bulls reclaim $2.8k.
Ethereum is on track for its best September in a decade. Specifically, ETH is up 7% for the month, which would make it the best September since 2016 and only the fourth positive September in the past decade.
With that being said, Ethereum’s short positioning appears to be extremely bullish at the moment. According to the chart below, ETH short positions have surged by roughly 13,000% in the past two weeks, rising from just over 771 ETH to over 101,000 ETH. That’s an extreme buildup of bearish bets. If ETH starts pushing higher, this crowded short positioning could quickly turn into fuel for a sharp short squeeze.
Technically, ETH is pressured by the big supply wall between $2,722 and $2,822, where more than 13.3 million ETH have changed hands. Moreover, ETH declined by about 1.5% this week after the breakout above $2.8k last week, which suggests that selling pressure is clearly intensifying. In this case, the rising shorts indicate traders are betting on ETH’s inability to surpass this resistance. But what if ETH breaks through $2.8k?
If bulls step in, this massive buildup of shorts could turn into a perfect bear trap. Short sellers may then be forced to cover, adding more buying pressure and potentially givingEthereum’s post-Hegotá upgrade might just be one piece of the puzzle. Ethereum’s transition to a more general blockchain architecture and an upgrade to make the blockchain more scalable, secure, and private.
Such a roadmap may come at the most needed time, given the ongoing large-scale accumulation of ETH by on-chain whales. According to on-chain analytics, the number of ETH accumulated by whales is up 21.4% within the last seven days and reached 321k ETH as of now. At the price of $2.7 million, the total value of the accumulation sums up to $864 million.
As can be seen in the chart above, staked ETH has hit a new all-time high of 43.5 million ETH, or over 35.6% of the total supply. In addition to that, there has been an influx of more than 500,000 ETH into staking in the past week alone, meaning ETH is actively being locked away instead of being used for trading.
Together, the rise in both whale accumulation and record-breaking staking activity is a sign that investors are buying into ETH for the long term. Against this backdrop, the post-Hegotá upgrade could become another catalyst to keep this momentum going. Thus, the 13,000% increase in short positions becomes more interesting. While traders are buying bearish bets, whales acquire more ETH that is staked.
If bulls penetrate key resistances, this crowded positioning will lead to a bear trap that forces shorts to cover and provides the fuel for ETH to reach $3k in October. Ethereum shorts jumped 13,000%, while whales continue to accumulate and staking hits record highs. AMBCrypto was founded in 2018 with a mission to simplify and bring the latest blockchain and cryptocurrency news to our readers.
We have quickly grown into the digital news source for an emerging generation of cryptocurrency enthusiasts, reaching more than a million readers on a monthly basis, across the globe.
Please follow us on Google to support usCanada Latest News, Canada Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Valter Sedin Signs First MLS Contract with Vancouver WhitecapsValter Sedin, son of Canucks legend Henrik Sedin, signed his first MLS short-term contract with the Vancouver Whitecaps and was on the bench against D.C. United.
Read more »
Puka Nacua injury update: Rams star could return in Week 4, surgery still on the table if he can't improveThe Rams believe Puka Nacua is dealing with a short-term injury.
Read more »
Vancouver Canucks Embrace Full Rebuild for 2026-27 NHL SeasonThe Vancouver Canucks enter the 2026-27 NHL season committed to a full rebuild, prioritizing long-term draft success over short-term playoff hopes.
Read more »
Brightstar grows Sandstone mineral resource to 3.6-million ouncesASX-listed Brightstar Resources has doubled its Two Mile Hill-Shillington mineral resource estimate (MRE) to 1.45-million ounces, with indicated resources having increased in particular by 177% to 526 000 oz. The company previously reported a 731 000 oz mineral resource for Two Mile Hill-Shillington, which marks an increase of 98%.
Read more »