Traders are shorting Ethereum, but a surprise rally can come instead
Binance traders are turning bearish, but stablecoin inflows show bulls may strike back.
Key Takeaways
Will ETH see a sharp move soon?
Low buy activity and heavy short positioning are indicative of either a breakout or sudden correction.
Is there buying power ready to push ETH higher?
Over $1.6 billion in stablecoins flowed into ETH in 24 hours, showing strong demand.
The spotlight’s on Ethereum [ETH]!
On Binance, buy activity is unusually low while short positions are building, this can lead to a sharp drop or a sudden spike.
At the same time, $1.6 billion in stablecoins flowed into ETH in just 24 hours, showing plenty of buying power ready to move.
Will this push ETH higher, or spark a quick correction?
ETH traders turn bearish on Binance
Ethereum traders on Binance are showing unusually strong bearish sentiment, with the taker buy/sell ratio dropping below 0.87 on the 19th of September.
This is a level reached only twice earlier this year.
The data shows heavy positioning on the sell side as ETH hovers near an ATH around $5,000.
Similar lows in January and February coincided with declines below $1,500. The 7-day average was at 0.93 at press time, marking the year’s lowest point.
This could mean a potential risk of a correction, but extreme bearish consensus can also cause short squeezes if buying pressure returns.
A pullback and a rally
Analyst TedPillows noted on X that ETH has been consolidating just below its 2021 ATH.
He added that the pattens show at least a 25%+ correction after reaching previous ATHs. A similar move this time could bring prices down to around $3,700-$3,800 before resuming an upward trend.
Meanwhile, the stablecoin supply on Ethereum has surged to a new ATH of roughly $173 billion, up $50 billion since the start of the year.
This massive inflow of stablecoins indicates significant buying power in wait, potentially fueling a strong rally that could drive ETH toward $10,000 by early 2026.
ETH faces key support and resistance levels
Following all this, Ethereum’s price action is entering a critical phase.
The chart showed ETH consolidating around $4,470-$4,500, with short-term support near $4,460 and immediate resistance around $4,495.
RSI showed neutral momentum, while the MACD showed a slightly bearish bias but no strong trend yet.
In the short term, a break above $4,495 could trigger a rebound toward $4,550, while falling below $4,460 may open the path to $4,400.
