BEARISH (0.80)CoinTelegraph

Ether Faces Liquidity Pressure Amid Whale Caution

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Ether (ETH) has recorded its longest consecutive weekly decline since 2022, with price action now in its sixth week of losses. Analysis of on-chain data reveals a notable contraction in whale order sizes, suggesting large holders are adopting a more cautious stance amid the persistent downtrend. This behavioral shift points to reduced institutional or high-net-worth participation, potentially signaling diminished confidence or a strategic pause in accumulation.

Compounding this dynamic, a significant short cluster valued at approximately $2 billion has formed near the $2,000 price level. This concentration of bearish positions creates a substantial technical resistance zone and frames a tightening liquidity scenario for ETH. The convergence of extended price weakness, shrinking whale activity, and a formidable short wall suggests the market is entering a critical phase where a decisive break above or below key levels could determine the near-term trajectory.

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