Ethereum, the second-largest token, faced considerable market challenges while Bitcoin's price reached new heights. Struggling to rise above $3500 at the start of the year, Ethereum remained within a narrow price range.
Ethereum During Market Challenges
At the start of February, Ethereum experienced a significant drop, losing 37% of its value within hours amid escalating trade tensions. In December, the token attracted more than $2 billion in new investments, indicating positive expectations.
Short Positions and Potential Reasons
Short positions on Ethereum rose by 40% in a week and 500% since November 2024. This suggests that hedge funds may have insights not available to retail traders. Other reasons include market manipulation and uncertainty over Ethereum's security status under the Trump administration.
Forecast for Future Price Movements
Ethereum maintains an upward trend line, supported since 2023, with a 50-day average support. Upcoming major updates could support growth. However, market uncertainty requires attention to details such as RSI divergence.
The future potential of Ethereum remains a topic of debate. The influence of external economic factors and the anticipation of news require a measured approach to its prospects.
