Ethereum had a rough 2024, lagging behind Bitcoin and other cryptocurrencies. But 2025 is looking brighter, with ETH already up over 10% in just a few days! This early jump has investors and analysts excited.
Aggressive Shorting: The $350M Daily Drain
Analyst Maartunn revealed some interesting data: Ethereum’s market is seeing a lot of short selling. Every day, sellers are outpacing buyers by over $350 million! This intense selling pressure likely explains Ethereum’s 2024 slump. But the hope is that this trend is about to flip.
Can ETH Break Free?
Ethereum is trying to climb above its 2024 peak, but it’s a tough fight. While the recent price increase is promising, significant selling pressure remains a major hurdle. Maartunn’s data, sourced from CryptoQuant, highlights this aggressive shorting. This constant selling makes it hard for ETH to break out of its current price range.
However, this kind of intense shorting often precedes a market reversal. Eventually, sellers run out of steam, and buyers start to take over. Smart long-term investors are seeing this as a buying opportunity, hoping to profit from ETH’s currently low price.
Crucial Price Levels to Watch
Ethereum is currently trading around $3,650 after a strong start to 2025. It recently broke through a key technical indicator (the 4-hour 200 EMA), which is a positive sign. Now, it’s testing another important level (the 200 MA on the same timeframe). If ETH can hold above this level, it could signal a major rally towards, and beyond, last year’s highs. This would likely boost investor confidence and attract even more buyers.
But there’s a risk. If Ethereum fails to maintain support above the 200 MA, we could see another round of selling, potentially wiping out recent gains and delaying any real recovery. The next few weeks will be crucial in determining Ethereum’s direction.
