Following a 50% drop from its mid-January peak, ETH has been hovering around the critical $2k level, potentially setting a trap for bears before moving higher.
Notably, the entity is holding a massive $200 million ETH long position, reportedly the largest on the platform.
ETH’s sideways chop, backed by heavy whale longs, suggests growing confidence in a breakout.
If $2k holds as support, shorts could get trapped and squeezed hard once momentum kicks in.
The real test is whether bid support is forming underneath.
Without strong spot demand, the move higher could lack follow-through.
And if overhead liquidity remains heavy, the current structure risks turning into a bull trap, especially considering the massive $200 million leveraged long sitting in the market.
It looks like the real test for Ethereum holders is just getting started.
ETH has carved out four lower lows and hasn’t been able to flip key resistance back into support.
That keeps the pressure on bulls to defend this range and prevent a fifth breakdown.
ETH’s unrealized profit ratio for whales has flipped negative across all cohorts, meaning even large holders are now underwater, which can shake conviction if volatility picks up.
With whales already under pressure, any sharp move could quickly turn into capitulation.
Bulls don’t look fully confident absorbing supply at these levels.
Taken together, calling $2k a confirmed floor for Ethereum still feels a bit premature, making the current chop look less like clean accumulation and more like a potential bull trap.
A $200 million ETH long and two weeks of consolidation suggest a possible resistance-to-support flip above $2k, but soft spot demand raises the risk of a bull trap instead of a breakout.
Ethereum whales are now underwater while macro uncertainty increases the chances of potential capitulation if $2k fails.
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