Short Squeeze $100 Million…Ethereum's Upward Engine Re-Ignited

▲ Ethereum (ETH) ©Go Da-sol

Ethereum (ETH) has recovered the $2,400 mark, and with the derivatives market turning to a buying advantage, expectations for further gains 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 after the extension of the US-Iran ceasefire. In particular, in the derivatives market, funding rates have moved out of the negative range for about a week and turned positive to around 0.0031%, indicating a dominance of bullish bets.

A positive funding rate means that long position investors pay costs to short position investors, indicating strong upward expectations in the market. Indeed, the taker buy/sell ratio has also turned to a buying advantage, and a short squeeze of approximately $100 million occurred in the last 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 inflows across the derivatives market. However, in the spot market, some investors are realizing profits as the price approaches $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, where the 20-day, 50-day, and 100-day exponential moving averages are formed, and the Relative Strength Index (RSI) remains at 60, maintaining upward potential. However, the Stochastic indicator has risen above 70, showing some signs of short-term overheating.

The key going forward is whether it breaks through the $2,466 resistance. If it breaks above this level and settles, an ascending triangle pattern will be completed, potentially opening up room for further gains 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 range 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.*