Ethereum is at a pivotal moment, currently hovering around the $1,800 mark. With the price showing a consistent downward trend, speculation is rife that ETH could drop to $1,200 by the end of the month. While many investors may find this outlook unappealing, traders on HyperLiquid are making substantial profits by betting on the price decline. Short sellers have already raked in millions from this bearish market.
Typically, market downturns result in losses for most traders, but short selling has allowed the bears to cash in. Since its peak in 2024, Ethereum has lost over 46% of its value, dropping from $4,006 to its current value of around $1,800. This has led to a massive $255 billion reduction in Ethereum’s market capitalization, from $482 billion to $227 billion.
Analysts at Standard Chartered recently revised their price forecast for Ethereum, slashing it from $10,000 to $4,000. They suggest that Ethereum’s network could be in a structural decline, making it challenging for the cryptocurrency to recover in the near future.
According to data from Santiment, only 47.6% of Ethereum holders are currently in profit, marking the lowest level since October 2023. This downturn has triggered panic among investors, while traders continue to take risky bets in an attempt to predict where the price will go next.
One notable example of a successful short-seller comes from a trader on HyperLiquid, who turned a significant profit by betting against Ethereum. On March 3, when Ethereum was trading at $3,000, the trader placed a $143 million short position with 25x leverage. As the price plummeted to $1,878 on Tuesday, the trader cashed out with an $86 million profit. Despite their success, the trader is still at risk—if Ethereum climbs back to $3,194, their position will be liquidated.
However, not all bets have been as successful. One trader who predicted an Ethereum price rebound lost $5.21 million after buying 18.6 ETH with 20x leverage. With Ethereum’s price continuing to decline, the trader faces liquidation if the price drops to $1,725.
Currently, Ethereum is trading at $1,891, having lost 3% today from an intraday high of $1,940. Technical analysis reveals a bearish pennant pattern on the 4-hour chart, suggesting the price could drop further. A breakout below the current support could see Ethereum targeting the next swing low at $1,500—a 20% drop from its current price.
As Ethereum continues its struggle to maintain momentum, the question remains: Is $1,500 the next stop, or will the cryptocurrency find support and recover? Only time will tell.
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