Ethereum

Rally

Major

Reserve

<p>A surge in Ethereum futures open interest points to a huge rally. Short positions surge and a short squeeze is becoming more likely, while the Federal Reserve meets this week. It is expected to cut rates by 25 basis points further.</p> 
<h2 class="wp-block-heading" id="h-rising-eth-open-interest-and-aggregate-premium-data-signal-major-rally"><strong>Rising ETH Open Interest and Aggregate Premium Data Signal Major Rally</strong></h2> 
<p>Clearly, there has been a large increase in open interest. This is an indication that many traders are taking short positions, and a powerful short squeeze may be ahead.</p> 
<p>However, if these positions are forced to close because of a sudden pop in price, this can initiate a sharp spike to the upside, leading to a monster rally.</p> 
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<p>The aggregate premium data also indicates a rising demand for <a href="https://www.thecoinrepublic.com/2024/11/06/ethereum-in-smart-contracts-hits-new-ath-will-it-drop-below-2300/">Ethereum</a> futures over spot prices. This is a case of growing investor optimism or anticipation of upward price action.</p> 
<p>If the predictions happen, you’ll have a short squeeze that may work for months, if not years. And it may be talked about in trading circles as, “What was that rally?” </p> 
<p>And it’s that combination of open interest buildup and potential squeeze such as this one that makes Ethereum’s current setup so notable.</p> 
<h2 class="wp-block-heading" id="h-analyst-predicts-eth-rally-with-fed-s-expected-rate-cut-this-week"><strong>Analyst Predicts ETH Rally with Fed’s Expected Rate Cut This Week</strong></h2> 
<p>Ethereum shows an upward bounce, with Market focus on a 25 basis point rate cut hint expected from the Federal Reserve If Ethereum follows the expected cut, a further upward trajectory is possible, adding more fuel into the fire for the crypto market. </p> 
<p>Crypto analyst Michaël van de Poppe says such good conditions could also push Bitcoin into a range above $90,000-$100,000.</p> 
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<p>In addition, he mentions <a href="https://www.thecoinrepublic.com/2024/11/04/ethereum-holds-support-at-2087-can-it-rally-to-6000/">Ethereum’s</a> recent recovery from a descending trend, which suggests that there is a probable trend reversal if buying pressure comes back to par. ETH is testing key support levels, and, with a healthy macroeconomic backdrop, it is possible for the token to sail further.</p> 
<h2 class="wp-block-heading" id="h-ethereum-supply-shrinks-as-staking-grows-fueling-bullish-outlook"><strong>Ethereum Supply Shrinks as Staking Grows, Fueling Bullish Outlook</strong></h2> 
<p>Ethereum is showing bullish signs. Holders are becoming increasingly confident, and the staking levels have reached all-time highs.</p> 
<p>The token reserves on the exchanges are also at record lows. The withdrawal of reserves from the exchange can imply a threat of a supply squeeze. Fewer tokens for trading on the exchange are available to be traded.</p> 
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<p>The likelihood of a supply-driven price increase comes to the fore as staking and coins move off exchanges with higher rates.</p> 
<p>This all points towards a positive outlook for Ethereum with limited supply and a potentially higher sustained long-term holding sentiment.</p> 
<p>The post <a href="https://www.thecoinrepublic.com/2024/11/07/ethereum-short-squeeze-setup-could-spark-major-price-rally/">Ethereum Short Squeeze Setup Could Spark Major Price Rally</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.</p>

Ethereum Short Squeeze Setup Could Spark Major Price Rally

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