Ethereum ($ETH) Bulls may already be facing their biggest test of the third quarter.
On the macro front, risk-off sentiment quickly returned after the US-Iran ceasefire collapsed, triggering a market-wide selloff and highlighting how sensitive risk assets remain to geopolitical developments. Recent Ethereum trader positions have highlighted this volatility.
Ethereum traders opened $86.99 million, according to Arkham Intelligence $ETH Short position, liquidation is set at $2,172. Notably, this position emerged after headlines surrounding the collapse of the ceasefire and the US termination of its trade deal with Spain, adding further pressure to market sentiment.
This suggests that this position is likely a calculated bet on further downside rather than a random short sale.
In addition to market uncertainty, Arkham Intelligence also flagged activity in wallets associated with Ethereum founder Vitalik Buterin, who transferred funds worth $1.6 million. $ETH For a new wallet. The move sparked speculation that further declines were to come, especially after the recent decline in the stock price. $ETH Transferred from Vitalic.
The market is already returning to risk-off mode, so the combination of seller-side pressure and the huge potential of $80 million $ETH Short positions are creating a more cautious setup for bulls. The key question now is whether this short position is an early signal of a deeper price decline. $ETH A breakdown, or whether the bulls can defend a major support level and trigger a short squeeze.
Ethereum faces key support test as bearish pressure builds
Ethereum sits at the intersection of bearish market conditions and a strong technical setup.
Ethereum is retesting the key support level at $1,580, while risk-off sentiment, rising short-term interest rates, and selling pressure support a bearish situation. This zone has served as a key demand area over the past three years, driving strong recoveries such as +149% rise in October 2023 and +203% in April 2025.
Therefore, for bulls, it is important to defend $1,580 to keep the bullish structure intact. In addition to support stories, Bitmines linked to Tom Lee continue to accumulate $ETH. According to Lookonchain, Bitmine purchased an additional 40,000 bits $ETH Worth approximately $71.6 million. bet at the same time $ETH Supply reaches a record high of over 40 million units $ETHcorresponding to about 33% of the total supply.
With this accumulation, $ETH’s move above $1,750 does not appear to be just a short-term pullback.
Rather, the bulls appear to be stepping in despite market concerns about the broader risk-off environment, rising short interest, and Vitalik’s recent policies. $ETH transfer.
If this momentum continues, the $80 million short position could be squeezed and the liquidation risk could increase to about $2.7 million. In this setting, Ethereum’s technical structure may be setting a bear trap.
Final summary
- Ethereum is facing a significant test as market FUD. $ETH Short and Vitalic $ETH Movement creates pressure. The bulls now need to defend the $1,580 support level.
- $ETHThe rebound above $1,750, Bitcoin buying, and increased staking supply indicate strong demand. Further gains could compress the $80 million short position.
