Why Ethereum is the New Gold: Wall Street’s Wild Ride and the Altseason Anticipation!

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In a universe where gold has decided to throw a party and invited everyone, it seems to have outdone itself by reaching a staggering $2,898 per ounce earlier on Monday. Meanwhile, Ethereum, that quirky little altcoin, is sitting at a rather unassuming ETH $2,649. It’s like the kid at the party who’s just waiting for someone to notice their cool new sneakers.

Now, if you squint hard enough, you might just see the 24-hour volatility of a thrilling 0.5%—which is about as exciting as watching paint dry, but hey, it’s something! The market cap is a hefty $319.32 B, and the trading volume is a jaw-dropping $20.85 B. Who knew numbers could be so thrilling?

Last week, the crypto world was gripped by a bearish sentiment that was as welcome as a rainstorm at a picnic. But fear not! The clouds have parted, and Bitcoin is attempting a daring pirouette that could lead to a fresh bullish sentiment. It’s like watching a cat try to land on its feet—fascinating and slightly nerve-wracking.

Ethereum Under Wall Street Control

According to a market research report from The Kobeissi Letter (which sounds like a fancy restaurant but is actually about finance), short positioning, spurred on by Wall Street hedge funds, has surged by more than 40% last week. It’s like they’ve all decided to bet against Ethereum at the same time, which is a bit like betting against the weather—good luck with that!

What is happening with Ethereum?

Short positioning in Ethereum is now up +40% in ONE WEEK and +500% since November 2024.

Never in history have Wall Street hedge funds been so short of Ethereum, and it’s not even close.

What do hedge funds know is coming?

(a thread)

— The Kobeissi Letter (@KobeissiLetter) February 9, 2025

In a twist that could only happen in the crypto world, Eric Trump, VP of the Trump Organization, has declared that now is a splendid time to add Ether to crypto portfolios. This has sent trading activity soaring like a catapulted potato.

What’s Next for ETH Price

In the grand scheme of things, Ethereum has been consolidating in a horizontal channel between $2,200 and $4k since March 2024. It’s like a rollercoaster that forgot to go up. With a fully diluted valuation of about $318 billion and a 24-hour average trading volume of around $20 billion, it must hold above the support range of $2,200 to $2,622 to avoid a potential selloff to $1,500. No pressure!

However, the bullish sentiment for Ether is being propped up by institutional investors who are adopting it like it’s the latest fashion trend. The increasing short positioning by Wall Street hedge funds is set to trigger the largest short squeeze in altcoin history. It’s like watching a game of musical chairs, but with more money and fewer chairs.

If Ether’s price manages to close above the support/resistance level around $3,500, all the short positions will run long, fueling a major bull rally. It’s like a stampede of bulls, but with less mud and more spreadsheets.

$ETH GOING LOWER AS PLANNED

— KNIGHT $INJ TO 100$ (@cryptoknight890) February 10, 2025

Robust Fundamentals

The Ethereum network remains the reigning champion in the decentralized financial (DeFi) ecosystem, even as new competitors like Solana (SOL) try to crash the party. According to market data from Defillama, Ethereum boasts a total value locked of about $56 billion and a stablecoins market cap of around $121 billion. It’s like being the coolest kid in school, even when the new kid shows up.

Remarkably, Ether’s TVL is higher than the next four largest smart contract chains combined. Meanwhile, the Ethereum network is basking in the glow of mainstream adoption by institutional investors. As Coinspeaker pointed out, the cash inflow to US spot Ether ETFs has recently surged, bringing the cumulative total net inflow to a staggering $3.18 billion. It’s like finding a

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2025-02-10 14:13