• Ethereum whales accumulate over 450,000 ETH in 48 hours, signaling strong smart money confidence.
• ETH eyes $5,000 as analysts warn a breakout could trigger a massive short squeeze.
• The derivatives market shows balanced positioning with neutral funding rates despite high trading volumes.

Ethereum (ETH) is once again at the center of attention in the cryptocurrency market as whales step up their accumulation and analysts highlight a possible breakout. At the time of writing, Ethereum is trading at $4,599 with a 24-hour trading volume of $69.48 billion and a market cap of $556.28 billion, down a -3.75% decline over the past 24 hours.

Ethereum Sees Surge in Whale Activity

Prominent crypto analyst Wimar. X highlighted that whales bought more than 450,000 ETH in the past 48 hours, indicating firm confidence from large market forces. He noted that “every smart money player is buying ETH currently,” highlighting increasing accumulation despite the recent price decline.

Ethereum Rally Sparks Market Excitement

Amid this bullish sentiment, analyst Crypto Patel noted that Ethereum has just reached a new all-time high of $4,900. According to Patel, if Ethereum’s rally continues and the $5,000 level is broken, it could trigger a massive short squeeze. Data shows that more than $2.2 billion in short positions on major exchanges could be liquidated if this level is breached.

The level of $5,000 is currently both psychological and technical resistance on ETH. A breakout through this level may trigger short squeezes, wiping out bearish positions. This may also cause abrupt volatility spikes as liquidity floods the market. Such a move could trigger a price discovery scenario, sending Ethereum into uncharted territory.

As whale accumulation increases, institutional demand intensifies, and technical signals indicate a breakout, ETH might be primed to begin a fresh growth phase. Should bulls continue to dominate and take ETH past $5,000, the subsequent phase of the rally may materialize, paving the way towards further record highs.

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Ethereum Derivatives Show Mixed Signals

Ethereum’s derivatives market is displaying conflicting signals regarding market positioning and trading activity. Over the recent period, trading volume jumped 133.50% to $188.19 billion, indicating strong market participation and short-term speculation. Nevertheless, open interest dropped 4.00% to $66.82 billion, implying a decline in outstanding contracts.

Meanwhile, the OI-Weighted funding rate is just 0.0067%, showing the market is balanced between longs and shorts. Funding costs remain near neutral, and despite high trading activity, the derivatives market is mostly balanced, indicating investors are anticipating a breakout before committing heavily.

Also Read | Ethereum Falls Below $4,800, But Dominance Remains