🚀 Ethereum shocked the market by smashing past the $2,700 level, liquidating over $50M in short positions on Binance. The breakout zone acted like a liquidity trap, triggering a short squeeze that briefly boosted bullish momentum.
⚠️ But not so fast—over 144,000 ETH was sent to derivatives exchanges right after the breakout. This spike in reserves usually signals renewed shorting pressure, raising concerns that the rally could be short-lived.
📉 Another big worry: Ethereum’s 1-year correlation with Bitcoin has collapsed to just 0.05, down from 0.63 earlier this year. That once-reliable relationship is breaking down, leaving ETH exposed without BTC’s bullish tailwind.
🔍 While Ethereum might be evolving into an independent asset, this decoupling is dampening market sentiment. Retail interest is fading, and top L2s like Arbitrum and Polygon are struggling to gain momentum in 2025.
📉 The surge may feel bullish on the surface, but these warning signs suggest ETH could face headwinds soon unless new catalysts emerge.
⚠️ Disclaimer:
This post is for informational purposes only and does not constitute financial advice or endorsement.
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