Ethereum’s $177M long squeeze sparks concerns – Can ETH hold above $2.1K?

The key takeaway? Other traders are leaning bullish too.

Bitfinex whales’ $ETH long positions are rising, while the Ethereum Long/Short Ratio crossed above 1 for the first time after three days of negative readings. This points to a shift toward bullish positioning. However, if too many traders crowd into long, another sharp move lower could trigger a fresh wave of liquidations.

From a technical lens, with Ethereum [$ETH] down 8% this week, the violent bullish positioning may lead to another bull trap, potentially pushing the price toward $2.1k if support breaks. But does this aggressive long positioning mean that traders are anticipating a catalyst that the broader market has yet to price in?

Ethereum: Hidden catalyst or crowded trade?

Ethereum’s recent weakness may not be $ETH-specific, as altcoin rotation could be behind the sell-off too.

Technically speaking, $ETH is down almost 8% in the week, while Solana [SOL] has corrected by over 9%. Moreover, Bitcoin dominance has climbed back above 60%, putting pressure on the altcoins. However, if $BTC.D fails to break through this resistance again; it could clear the path for an altcoin recovery, which may explain why traders are still building bullish Ethereum positions.