Ethereum is currently facing a short-squeeze risk as depicted by the rising Estimated Leverage Ratio (ELR) which acts as a crucial indicator of market sentiment.<\/p>\n
As the ELR has increased over the past few months, it reflects a growing number of traders adopting high-leverage short positions.<\/p>\n
CryptoQuant data, as shared<\/a> by market analyst \u2018ShayanBTC,\u2019 suggests that traders are betting on further declines in ETH\u2019s price amid an ongoing bearish outlook. With leverage levels reaching concerning highs, the futures market appears overheated, putting Ethereum at risk of a short squeeze.<\/p>\n ETH has shed over 2% in the past day alone and is currently trading just above $2,580. If the crypto asset price unexpectedly rises, those holding short positions may be compelled to buy back ETH to cover their losses, leading to a rapid price spike.<\/p>\n The 100-day moving average at $2,700 serves<\/a> as a significant resistance level. As such, a breakout above this threshold could trigger substantial short liquidations, further propelling ETH\u2019s price upward.<\/p>\n Meanwhile, data also points to a waning institutional appetite for ETH in the US market despite spot Ether ETFs attracting net inflows of $11.94 million on Tuesday, primarily driven by BlackRock\u2019s ETHA fund. Other investment vehicles posted no flows. According to CryptoQuant\u2019s analysis shared by analyst \u201cburakkesmeci,\u201d Ethereum\u2019s Coinbase Premium Index has fallen below its 14-day Simple Moving Average (SMA).<\/p>\n This crossover typically signals increasing selling pressure from US investors, which could potentially lead to price declines in ETH.<\/p>\n Looking at the Current Value, the Coinbase Premium Index stands at -0.05062437, while its 14-day Simple Moving Average (SMA 14) is -0.03906392. It is important to note that Coinbase serves as a preferred platform for institutional investors, and the fact that the current Premium Index is more negative than its SMA potentially signals that larger players are reducing their ETH exposure.<\/p>\n The post Ethereum (ETH) Price Faces Short-Squeeze Risk Amidst Waning Institutional Interest<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Ethereum is currently facing a short-squeeze risk as depicted by the rising Estimated Leverage Ratio (ELR) which acts as a crucial indicator of market sentiment. As the ELR has increased over the past few months, it reflects a growing number of traders adopting high-leverage short positions. Ethereum Faces Short-Squeeze Risk CryptoQuant data, as shared by […]<\/p>\n","protected":false},"author":0,"featured_media":15995,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-15994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/15994"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15994"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/15994\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/15995"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Decline in Institutional Appetite<\/h2>\n