Ethereum briefly fell below $3,840 last week as part of a broad slump across the crypto sector. The asset has since bounced back and is trading near $4,110 after rising by 2.43% over the past day.
Experts say shorting Ethereum now is reckless.
“Only Fools Short” ETH
In his latest post on X, analyst Mr. Wall Street said that Ethereum is currently in an extremely bullish setup, and added that recent bearish noise could, in fact, help in fueling a major rally.
According to his analysis, ETH is set to target $7,000‑$8,000 in Q4. He explained that this pullback is the first meaningful correction since the $1,500 lows in April, with a healthy 20% decline serving as a necessary reset before further upside. Mr. Wall Street also pointed out that tens of billions in liquidations occurred above previous bull market all‑time highs, and believes that shorting Ethereum in this environment would be a mistake.
Meanwhile, crypto analyst Degen Hardy said that bears are on precarious ground if ETH surges to $4,200. According to his analysis, more than $40 billion in liquidations sit just above current levels, which is primed to be triggered in a sharp rally. Hardy highlighted the market’s tension and questioned whether the cryptocurrency will first test lower support levels or surge straight through resistance. The implication is clear: shorts face significant risk, and any decisive upward move could spark cascading liquidations. Such a pattern sets the stage for potentially explosive momentum.
According to Lookonchain data, whale activity in Ethereum remained strong despite recent market volatility. Last week, 16 wallets collectively received 431,018 ETH, which is approximately worth $1.73 billion, from major platforms including Kraken, Galaxy Digital, BitGo, FalconX, and OKX.
More recently, a fresh wallet moved 3,884 ETH, valued at around $15.57 million, from OKX. Another whale wallet, which sold 1,857 ETH ($4.18 million) five months ago at $2,251, repurchased 1,501 ETH ($6.17 million) on Monday at $4,114, which indicated a willingness to buy even at higher price levels.
Ethereum’s No‑Sell Wallets Swell
As reported by CryptoPotato earlier, Ethereum accumulator addresses saw a historic inflow of nearly 400,000 ETH on September 24th, following a record 1.2 million ETH accumulation less than a week earlier, according to CryptoQuant. These no‑sell wallets have made multiple purchases without any withdrawals.
Such moves, hence, point to strong long‑term holder activity, potentially from institutional players or ETH ETF‑linked entities. The inflows occurred amid a steep market sell‑off driven by macroeconomic concerns.