New Day, New Ethereum Price Warning — But Why Is $1 Billion Still Betting Higher?

Ethereum's price is showing signs of weakness, evidenced by a recent 1.4% drop and a hidden bearish divergence on the daily chart, suggesting the recovery is losing momentum. This bearish outlook is reinforced by an on-chain cost basis heatmap showing a major support cluster between $1,870 and $1,890, where selling pressure could accelerate a deeper correction. Furthermore, large holders (whales) have slightly reduced their ETH supply, indicating caution.

Contradicting these warnings, derivatives traders have surged leveraged long positions past $1 billion, nearly three times the short leverage, with significant concentration near the $1,870 support zone. This creates a dangerous conflict: if the price drops, forced liquidations of these longs could exacerbate the sell-off.

The optimism stems from Ethereum's 8-hour chart forming a bullish cup and handle pattern with an upward-sloping neckline. A break above $2,140 could signal a 17% rally toward $2,600, explaining the aggressive bullish bets. However, this bullish structure is contingent on holding support; a drop below $1,890 risks invalidating the pattern and triggering significant liquidations.

(Source：BeInCrypto)