Key Points:
- Ethereum rises 7.3% to $4,618.95, just 6.4% below its November 2021 all-time high.
- Large ETH shorts face $244.78M in losses, with most coming from Abraxas Capital.
- Retail sentiment remains skeptical as whales sell and funding rates stay low.
Ethereum gained 7.3% in the last 24 hours, reaching $4,618.95 and narrowing the gap to its $4,891 all-time high from November 2021 to just 6.4%.
Market capitalization climbed to $557.54 billion, while daily trading volume surged 41.38% to $64.27 billion, suggesting increased liquidity and active market participation.
According to data from Onchain Lens, hedge fund Abraxas Capital holds short positions in BTC, ETH, SOL, HYPE, and SUI across two wallets.
These positions now face a combined unrealized loss of $244.78 million, with $188.7 million of that loss tied to ETH alone. The bullish market momentum has sharply eroded the value of these short bets.
Whales Offload ETH as Buyers Absorb Supply
Despite the rally, large holders have been selling into strength. Lookonchain reported that the entity known as “7 Siblings” sold 19,461 ETH, worth $88.2 million, at an average price of $4,532 over the last 15 hours.
The group still controls 1.21 million ETH, valued at approximately $5.6 billion, after purchasing 103,543 ETH for $229.7 million earlier this year at $2,219 per coin.
Spot On Chain also noted that a wallet linked to the Ethereum Foundation sold 4,095 ETH for $18.75 million at $4,578 in the past four hours.
This wallet originally received 20,756 ETH from the Ethereum Foundation in May 2017. Despite these sizable sales, Ethereum’s price has remained near recent highs, showing that current market demand is capable of absorbing large transactions.
Sentiment Data Signals Potential for Further Upside
On the other hand, santiment data reveals that retail traders remain skeptical, with fear and disbelief dominating sentiment despite Ethereum’s climb.
Historically, prices have risen during such periods of low retail confidence, while peaks in greed have often preceded corrections.
Crypto Rover data shows funding rates for ETH remain low compared to previous cycle peaks, indicating that leverage in long positions is far from overheated. This could leave room for additional upward moves without triggering immediate liquidation risks.
Institutional signals are also emerging. BitMine disclosed in a supplementary prospectus that it has increased the total potential sale of common stock under its Sales Agreement to $24.5 billion.
This includes $2.0 billion under the current prospectus, $2.5 billion under a prior supplement, and $20.0 billion under the latest filing, potentially providing substantial capital for expansion or treasury activities.
With key stakeholders accumulating ETH from smaller holders and retail sentiment still cautious, the current conditions align with historical patterns that have often preceded new price records.
The market’s ability to absorb whale sales, maintain strong spot demand, and keep leverage manageable suggests Ethereum may soon challenge its all-time high.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/ethereum-hits-4618-as-shorts-face/