"Sold more than silver"...Ethereum, Institutional Buying Frenzy Amid Short-Selling Pressure

▲ Ethereum (ETH)/AI Generated Image

An analysis suggests that Ethereum is accumulating energy for an explosive rally, facing large-scale short-selling pressure in the global market, comparable to traditional commodities like silver.

On April 17 (local time), crypto media outlet NewsBTC reported that Ethereum (ETH) has emerged as one of the most shorted assets globally. Analyst DGMD.6529 revealed on his X (formerly Twitter) that institutions have been buying an average of approximately $21 million worth of Ethereum daily over the past 21 months. Despite about $11.8 billion flowing in through spot ETFs alone, bearish bets in the futures market are at their peak, heightening market tension.

Institutional activity is also actively unfolding outside of ETF channels. Digital asset treasury departments, including Bitmine and SharpLink Gaming, are understood to have acquired an additional $10 billion to $15 billion worth of Ethereum through non-ETF routes. Analyst DGMD.6529 assessed, "The global financial system is undergoing structural changes, and banks are accelerating the integration of decentralized financial infrastructure for their survival."

Ethereum maintains an overwhelming market share in decentralized finance and real-world asset tokenization, expanding its technological moat. By improving mainnet scalability, it has resolved speed and cost issues, solidifying its position as a reliable platform. While the current price remains at the lower end of a five-year consolidation range since 2021, the network's intrinsic value and narrative strength are considered to be at an all-time high.

Technical indicators are passing a critical watershed. Crypto analyst Daan Crypto Trades analyzed that Ethereum is retesting its 200-day moving average on a weekly basis. This point has historically served as a strong support or resistance level during periods of extreme market uncertainty. Whether buying forces successfully reclaim this area and secure it as support will be a key factor in the return to a long-term upward trend.

Ethereum has also demonstrated a unique status in the number of validators, which indicates the network's security and decentralization level. According to staking service provider Everstake, the number of Ethereum validators is estimated at approximately 921,500, a scale that overwhelms other networks in the market. The network's resilience and security, secured through widespread participation, serve as a key driving force for Ethereum to establish itself as a standard platform for global finance.

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