- Bitfinex ETH short positions fell from about 101,000 to below 10,000 in just 11 hours.
- Whale wallets added over 320,000 ETH, worth roughly $864 million in just a week.
- ETH must clear resistance between $2,722 and $2,822 to keep rallying far higher.
Whales on the crypto exchange Bitfinex closed about 95% of their bets against Ethereum’s price this week, and the crypto community is split on what it means for ETH going forward.
What Actually Happened
Ethereum short positions on Bitfinex dropped from around 101,000 to below 10,000 in 11 hours overnight, even as ETH’s price barely moved, slipping about 1% during that window. Since the price did not spike, these shorts were closed by choice, not forced out through liquidations.
Some experts see this as a warning sign. However, other analysts disagree. They point out that in the last major bull run, ETH shorts on Bitfinex actually kept rising as the price rallied, eventually peaking near 243,000 ETH, more than double where shorts stood before this week’s drop.
Historically, these whales have added shorts during price rallies, not sold into weakness. If that pattern repeats, both sides of the market, shorts and longs, could keep growing together as ETH climbs.
Big Money Keeps Buying
While the short story plays out, other data shows large ETH holders are quietly accumulating. Transactions worth more than $1 million have jumped nearly 500% in a week, and big wallets have added over 320,000 ETH, worth close to $864 million at current prices.
That said, ETH still faces a tough wall of resistance between $2,722 and $2,822, a zone where more than 13 million ETH previously changed hands. A few failed attempts to break through would not be unusual, but a clean move above it could open the path toward $2,970 and then $3,366.
On shorter timeframes, ETH looks like it is forming a bullish pattern, with $2,640 acting as support. An hourly close above $2,700 could confirm a breakout with $3,000 as the next target.
Money Is Still Flowing Into ETH Funds
Ethereum ETFs pulled in $17.1 million on September 28, marking seven straight days of inflows. Bitcoin ETFs moved the opposite way that same day, losing $23.77 million to outflows.
With the fourth quarter starting in just a couple of days, a period historically strong for crypto, many believe the current pullback is simply healthy profit-taking rather than the start of a bigger downturn.
Related: Ethereum Price LIVE: Liquidity Shakeout Could Fuel Short Squeeze to $2,789
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