 ▲ Ethereum (ETH) © |
As Ethereum (ETH) continues its fierce battle for direction around the $2,000 level, the movement of a whale building a $200 million long position has been detected, placing the market on a knife’s edge between the start of a bull run and a potential bull trap.
According to cryptocurrency outlet AMB Crypto on February 21 (local time), Ethereum has plunged 50% from its mid-January peak and has since traded sideways for over two weeks near the critical psychological support level of $2,000, forming a classic accumulation pattern. This could signal an attempt by bulls to trap bears before initiating a price rediscovery phase.
Blockchain analytics platform Arkham Intelligence confirmed that two large Ethereum wallets, believed to belong to a single whale, have established massive long positions totaling $200 million. This marks the largest position on the platform and suggests that if the $2,000 support holds, a short squeeze could occur as selling positions are liquidated when upward momentum strengthens.
However, beneath the optimistic outlook lies strong caution. Without robust spot buying support, any upward movement could quickly lose momentum, and considering the substantial sell orders overhead, the current structure carries a significant risk of turning into a severe bull trap. Since the sharp decline in October, Ethereum has set lower lows four times and repeatedly failed to flip key resistance levels into support.
On-chain data also reflects the fragile situation. Unrealized profits across all Ethereum whale cohorts have turned negative, leaving even large investors in loss territory. Additionally, macroeconomic uncertainties—including inflation, tariff disputes, and stablecoin regulations—are suppressing risk appetite, raising the possibility of large-scale capitulation selling by whales if the $2,000 level collapses.
Ultimately, many analysts believe it is premature to define $2,000 as a firm bottom given the weak spot demand. With the current sideways movement potentially representing a deceptive rally rather than pure accumulation, this is a moment for cautious observation of the market’s next move.
Disclaimer: This article is provided for investment reference purposes only, and we are not responsible for any investment losses resulting from its use. The content should be interpreted solely for informational purposes.