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Ethereum Signals Diverge as Exchange Supply Falls and Short Bets Build

Conflicting signals leave Ethereum's next move uncertain.

Overview

  • Ethereum traded near $2,280 as it slipped below a key daily support band, with $2,150 highlighted as the next level to watch.
  • The share of ETH held on exchanges has dropped to low levels without a matching price bottom, creating a notable on-chain divergence.
  • Analysts say similar gaps in past cycles most often closed with price falling to align with the exchange supply signal.
  • Binance futures funding averaged about -0.0018 over the past month, indicating traders are paying to keep short positions open.
  • Short positions have begun to be liquidated, which can force buybacks and fuel a brief squeeze even as broader signals lean cautious.