Ethereum (ETH) is currently experiencing consolidation, with its price fluctuating between $2,700 and $2,600 over the past three days. Although the price movement is confined to this range, there has been a significant spike in activity within the Ethereum derivatives market, marked by an increase in positions by short sellers.
Ether ETPs Surpass Bitcoin in Inflow
Over the last 24 hours, Ethereum price has been attempting to surge above $2,700; however, it faces strong bearish domination. Data from Coinglass shows that Ethereum witnessed a total liquidation of nearly $45.64 million, with buyers liquidating around $28.46 million worth of positions.
However, there’s a stronger dominance of Ethereum ETPs than Bitcoin. In the past trading week, Ether ETPs saw a 95% increase in inflows compared to Bitcoin ETPs, attracting a substantial $793 million, according to a report by CoinShares on Feb. 10.
This rise in Ether ETP activity came during ETH’s price drop below $2,700 on Feb. 6, which triggered “significant buying-on-weakness,” as noted by CoinShares research director James Butterfill.
This marked the first occasion in 2025 where Ether ETPs surpassed Bitcoin ETPs in terms of inflows, with similar events occurring in late 2024.
Also read: Florida Proposes Bill to Invest Public Funds in Bitcoin
However, the muted price of Ether can be because of hedge funds ramping up their bearish positions on the altcoin. Short positions in Ethereum have surged by 40% in just one week and by 500% since November 2024. This level of short selling by Wall Street hedge funds is not normal in Ethereum’s history, far surpassing any previous records.
One factor contributing to the bearish sentiment among traders towards ETH is the overall declining trend of the network. In addition to the supply reverting to pre-merge levels, there has been a noticeable decline in activity on the Ethereum network. This decline is highlighted by the fall in the Total Value Locked (TVL) in decentralized finance (DeFi) to a low of $56.8 billion in February.
What’s Next for ETH Price?
The price of Ethereum is struggling to hold on to its momentum around $2700, resulting in a consolidation. Currently, Bitcoin is facing bullish domination as buyers aim for a break above the immediate Fib channel. Right now, ETH is priced at $2,677, having surged by 2.1% in the last 24 hours.
The ETH/USDT trading pair is struggling around $2,700, which might pose a slight challenge. If it can stay above this level, it would be advantageous for buyers. The price could then attempt to move above $3,000, and potentially settle around $3,200.
On the other hand, if the ETH price rejects the declining trend line, we might see a strong correction. Then, there would be a possible bearish consolidation toward $2,500. With the RSI trend line hovering just below the midline, there could be a continued buying demand toward $2,700-$3,000.
