Ethereum was able to fork from the broader crypto market trends, recording profits while the market as a whole experienced a decline in capitalization.
Over the past 24 hours, the global crypto market has declined by 5.3%, while Ethereum has recorded a 2.4% increase, currently at around $3,719. The move attracted renewed interest from analysts, particularly as it suggests that on-chain data suggests changes in trader sentiment and positioning.
Short squeezes and whale activities have shaped Ethereum’s recent gathering
Amr Taha, a contributor to Cryptoquant’s QuickTake platform, highlighted the importance of Ethereum’s recent pricing action. Taha said Binance was liquidated when the short position exceeds $160 million due to a sudden breakout of over $3,700.
The event followed an early wave of $195 million with a short liquidation near the $3,500 mark, pointing to a pattern of short squeezes in the cascade. As the short sellers rushed to cover their positions, this gave them price momentum that would at least temporarily rise even more.
Taha also observed a significant divergence in whale activity across the assets. According to data from Whale Screeners, there was a net inflow of over $300 million in Bitcoin in the central exchange. At the same time, more than $300 million worth of stubcoins have withdrawn from the exchange.
This combination may reflect a cautious outlook as whales are potentially prepared to sell Bitcoin, and at the same time may reduce the liquidity available for immediate buy-side activities.
Taha warned that such short narrowing could lead to price increases over short periods, and that consolidation or corrections often continue.
He identified several signs that suggest potential short-term headwinds. A decline in open interest after the liquidation cascade, BTC whale deposits to prepare for sales, and a decrease in exchange balances of stubcoin indicating that limited new capital will enter the market. “Combining these conditions could contribute to pullbacks if fresh inflows are not achieved,” Taha wrote.
ETH’s outlook as the market enters the second half of 2025
In another analysis, CipherDan, another cryptographic analyst, provided a broader perspective on Ethereum’s trajectory. While acknowledging that recent price surges could pose a short-term correction risk, Dan argued that market metrics suggest this is likely to be limited in scope.
Comparing current conditions to the historic futures market and the overheating of March and November 2024, Dan noted that current leverage and emotional levels remained relatively restrained.
He also said that Ethereum’s performance has been suppressed throughout this upcycle, and sometimes even reached an underrated level. This could indicate that there is still room for assets to rise, especially in the second half of 2025.
If Ethereum continues to climb, Dan suggested that it could also serve as a catalyst for altcoin activity, given his tendency to follow ETH’s movements at the bull stage.
Special images created with Dall-E, TradingView chart
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