Ethereum Price Analysis: Record $883M Accumulation Clashes with All-Time High Short Interest Ahead of Pectra Upgrade
Rising short positions and a forthcoming significant network upgrade produce a complex market dynamic that puts Ethereum (ETH) at a pivotal point. With ETH/USD trading around $2,600, the second-largest cryptocurrency by market capitalization shows ongoing decline even with increasing general strength in the crypto market.
Record Short Interest in ETH Futures Signals Market Pessimism
With futures contracts on the CME hitting an unheard-of 11,342 contracts, hedge funds have taken more pessimistic attitudes on Ethereum. Recent statistics show that short holdings have dropped dramatically 500%, since November 2024. As ETH underperforms comparison to Bitcoin, which has gained almost 100% since the beginning of 2024 compared to Ethereumβs meager 3.5% increase, the surge in pessimistic bets follows.
ETH Accumulation Trends Paint Contrarian Picture
On-chain data show considerable accumulation at present price levels despite the gloomy mood. On February 7, Ethereum accumulation addresses registered their highest-ever daily inflowβ330,705 ETH (about $886 million). This results in a record 19.24 million coins total ETH held by long-term investors, a 20.55% rise in 2025 notwithstanding price drop.
Historical data suggests such accumulation patterns often precede significant price rallies. A similar surge in February 2023 was followed by a 35% price increase within two months.
ETH/USD Technical Analysis Shows Bearish Momentum
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For Ethereum, the short-term technical outlook still seems difficult:
- Price action shows rejection at the descending trendline
- RSI indicates oversold conditions at 29
- MACD maintains bearish crossover
- Critical support levels lie at $2,440 and $2,320
- A break below $2,359 could trigger an extended decline toward $1,905
Ethereum Pectra Upgrade a Potential Catalyst?
Early April 2025βs Pectra upgrade could be a major stimulus for price action. Combining the Prague and Electra ideas, the upgrade brings eight significant modifications meant to increase wallet functionality and validator efficiency:
- EIP-7702 enhances wallet functionality through account abstraction
- EIP-7251 increases maximum staking limits from 32 ETH to 2,048 ETH
- Initial tests scheduled for February 26 on Holesky testnet and March 5 on Sepolia
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