Ethereum (ETH) $2,659.9recently attracted attention in the crypto currency market. While the ETH/USD parity is around 2,600 dollars, increasing Short positions in the market and the upcoming large network update can cause harsh fluctuations in ETH’s price. Bitcoin 
$96,845.3Ethereum was only 3.5 percent, despite the 100 percent rise since the beginning of 2024. This reshapes investors’ expectations of Ethereum.
How do record -level short positions affect the market?
Chicago Commodity Exchange (CME) According to data, Short positions in Ethereum futures have reached a record level. Reaching a total of 11 thousand 342 contracts, these positions show that hedge funds have a very pessimistic attitude on Ethereum. Since November 2024, a 500 percent increase in short positions indicates that market expectations are negative for Ethereum.
On the other hand, in -chain data tells a different story. 330 thousand 705 units to Ethereum wallets on February 7 Eth (about 886 million dollars) entrance was recorded. This introduction brought the total balance of long -term investors who have accumulated Ethereum to the summit with 19.24 million ETHs.
Despite the decrease in prices for 2025, the fact that this balance increased by 20.55 percent reveals that investors consider these levels as an opportunity. Past data show that such accumulation waves often result in price rally. For example, a similar accumulation in February 2023 resulted in a 35 percent increase in the price of ETH in two months.
Ethereum Price Analysis: Pectra update Could it be an opportunity?
Ethereum networkIs preparing for an important period with the Pectra update, which is expected to take place in April 2025. This update will offer eight major changes in the network to combine “Prague” and “Electra” ideas.
One of the prominent improvements is the expansion of wallet functions with the EIP-7702 and the more functional of the calculation abstraction mechanism. On the other hand, the EIP-7251 aims to increase the confirmatory effectiveness by increasing the existing stinging limit from 32 ETH to 2 thousand 48 ETHs. All these changes aim to provide more liquidity and participation in the Ethereum network.
The first tests begin on February 26 on Holesky Testnet, while on March 5, the Sepolia Testnet will continue. While investors closely follow this process, the update was successfully implemented. Ethereum priceIt can significantly support. However, technical indicators indicate that the downward pressure continues for now.
If the critical support levels of the Ethereum price fall below 2 thousand 440 and 2 thousand 320 dollars, a new decline of up to a thousand 905 dollars should not be ignored.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
