Short Squeeze $100 Million...Ethereum's Rally Engine Re-ignited

▲ Ethereum (ETH) ©Godasol

Ethereum (ETH) has recovered the $2,400 level, and with the derivatives market turning to a buy-side dominance, expectations for further price increases are growing.

According to investment media FXStreet on April 22 (local time), Ethereum is trading around $2,400 as risk asset preferences across the market recovered following the extension of the US-Iran ceasefire. Notably, in the derivatives market, the funding rate turned positive to 0.0031% after about a week in negative territory, indicating a prevailing bullish sentiment.

A positive funding rate means that long position investors pay costs to short position investors, signaling strong bullish expectations in the market. Indeed, the taker buy/sell ratio also turned to buy-side dominance, and a short squeeze of approximately $100 million occurred in the past 24 hours, supporting the price increase.

Open interest also increased rapidly. According to Coinglass data, approximately 440,000 ETH in open interest was added in just a few hours, confirming new capital inflow across the derivatives market. However, in the spot market, some investors showed profit-taking movements as the price approached $2,400, raising the possibility of short-term selling pressure.

Technically, the upward structure is maintained. Ethereum has secured support above the $2,270-$2,350 range, formed by the 20-day, 50-day, and 100-day exponential moving averages, and the Relative Strength Index (RSI) remains at a level of 60, indicating room for further ascent. However, the stochastic indicator has risen above 70, showing some signs of short-term overheating.

The key going forward is whether it can break through the $2,466 resistance. If it breaks above this level and stabilizes, an ascending triangle pattern will be completed, potentially opening up room for further increases to $2,746 and then $2,831. Conversely, if it falls below $2,388, the possibility of a correction to the $2,352 and $2,211 levels cannot be ruled out.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*