Ethereum is sending mixed but increasingly tense signals to the market. While price remains capped below key technical levels, on-chain data and derivatives positioning suggest pressure is building beneath the surface.
More than 70% of open ETH perpetual positions are now tilted to the long side, reflecting aggressive bullish positioning despite price still hovering below $3,000.
Key Takeaways
- Ethereum longs now make up over 70% of open positions, increasing liquidation risk.
- Whale accumulation continues as ETH supply on exchanges keeps falling.
- Price remains below $3,000 and the 200-EMA, limiting bullish confirmation.
At the same time, exchange balances continue to fall, and whale accumulation is accelerating, creating a setup that historically precedes sharp moves.
Long Bias Dominates Derivatives Markets
Data from futures markets shows a heavy skew toward long exposure. With over two-thirds of positions betting on higher prices, Ethereum’s leverage profile is becoming increasingly one-sided.
Recent liquidation data reinforces this imbalance. Roughly $27.5 million in ETH positions were wiped out in the latest session, with long liquidations accounting for more than $21 million, compared to just over $6 million on the short side. This suggests that even modest downside moves are punishing late long entrants.
Such conditions often lead to short-term instability, as crowded trades leave little room for error if momentum fails to materialize.
Whales Accumulate as Exchange Supply Dries Up
While leveraged traders chase upside, large holders appear to be operating with a longer time horizon. One major Ethereum whale now controls roughly 569,000 ETH, valued at around $1.7 billion, highlighting continued confidence from deep-pocketed investors.
At the same time, ETH reserves on centralized exchanges keep shrinking, reducing readily available sell-side liquidity. This combination of declining exchange supply and steady whale accumulation tightens the market structurally, even as spot price remains range-bound.
Historically, such supply dynamics have amplified price reactions once volatility returns.
Price Stuck Below Key Technical Barriers
From a chart perspective, Ethereum remains under pressure. ETH is still trading below the $3,000 psychological level and beneath the 200-day exponential moving average, a zone many traders view as a long-term trend divider.
Momentum indicators reflect hesitation rather than strength. The RSI is hovering in the low-40s, signaling weak bullish conviction, while MACD remains near neutral, suggesting the market has yet to commit to a clear directional breakout.
This technical compression mirrors the broader market structure – coiled, uncertain, and vulnerable to sharp expansion.
Volatility Risk Builds as Signals Diverge
The tension between tightening supply and aggressive long positioning creates a fragile equilibrium. On one hand, reduced exchange balances and whale accumulation support a bullish longer-term narrative. On the other, crowded leverage increases the risk of sudden shakeouts if price slips further.
Historically, similar setups have resolved through heightened volatility rather than gradual price moves. Whether that volatility breaks upward or downward may depend on how Ethereum reacts around the $3,000 level and whether longs can maintain conviction without further liquidations.
For now, Ethereum remains stuck – but the underlying data suggests that calm conditions may not last much longer.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/ethereum-supply-on-exchanges-keeps-shrinking-as-price-stalls-below-3000/