Ethereum Price Forecast: Whales step up buying as short positions contract

Ethereum price today: $1,980

• Ethereum whales accumulated 320K ETH over the past week, while retail investors sold 210K ETH.
• Net short positions on Binance have contracted sharply over the past week.
• ETH saw a rejection at the 20-day EMA, which continues to cap potential short-term reversals.

After holding firm heading into the last weekend, Ethereum (ETH) whales have returned to action, pouncing on the volatility stemming from escalating military actions between the US and Iran.

Investors holding between 10K-100K ETH added 120K ETH to their collective holdings between Sunday and Monday. The move brings their total net inflows over the past week to 320K ETH.

On the other hand, retailers or wallets holding 100-1K and 1K-10K ETH collectively offloaded 210K ETH during the period, continuing their reactionary pattern to market sentiment.

Meanwhile, US investors, who were major sellers over the past few months, have remained positive despite recent geopolitical pressures. The Coinbase Premium Index, which measures US investors' sentiment, has held in positive territory after a slight decline.

Similarly, US spot ETH exchange-traded funds (ETFs) returned to net inflows on Monday, attracting $38.6 million, with no recorded outflows across the nine listed products.

At the same time, ETH futures Net Taker Volume on crypto exchange Binance shows short position dominance contracted sharply over the past week. The metric tracks the difference in volumes between buyers and sellers purchasing ETH futures contracts via market orders.

Ethereum Price Forecast: ETH faces rejection near 20-day EMA

Ethereum recorded $78.3 million in liquidations over the past 24 hours, driven by $48 million in long liquidations, according to Coinglass data.

In the daily chart, ETH trades at $1,980. The near-term bias stays mildly bearish as price holds below the 20-day Exponential Moving Average (EMA) near $2,025, keeping spot capped beneath the short-term trend gauge.

The Relative Strength Index (RSI) holds in the mid-40s after rebounding from oversold territory, signaling easing bearish pressure rather than established bullish control. The Stochastic (Stoch) has rolled over from elevated levels near 70, signaling waning upside momentum after the recent bounce, keeping the asset in a consolidation phase rather than a clear trend resumption.

Immediate resistance is seen at $2,108, where a break would expose the $2,389 level, with $2,746 higher up as a stronger barrier in line with the broader corrective structure. On the downside, initial support stands at $1,741, followed by $1,524, with a deeper floor at $1,405 if selling resumes. 

Holding above $1,741 keeps the current stabilization theme intact, while a daily close above the 20-day EMA would begin to tilt the bias back toward the upside.

(The technical analysis of this story was written with the help of an AI tool.)