Ethereum to $4K? – THESE ETH metrics hold the answer!

Key Takeaways

Ethereum’s price breakout past $2,850 triggered $206 million in exchange outflows – a sign of bullish accumulation. Yet, bearish whales are shorting big. Here’s what on-chain signals reveal.

Following the breakout of the key resistance level at $2,850, Ethereum [ETH] turned bullish and is poised for an upward rally.

The move appears to be retesting its breakout zone, a typical pattern before continuation. However, price action alone isn’t telling the full story.

$64M ETH buy meets $143M in shorts

On-chain tracker Lookonchain revealed a curious standoff, with some participants appearing to bet on the bearish side, while others seem to be taking advantage of the price consolidation.

On the 12th of July, Lookonchain noted Sharplink (SBET) purchased a significant 21,487 ETH worth $64.26 million via OTC and Coinbase Prime.

Source: X

In fact, this purchase came shortly after the firm had acquired 10,000 ETH worth $25 million from the Ethereum Foundation.

But not all whales are onboard.

Within the same window, three wallets opened heavy leveraged shorts, betting against ETH with 15x–25x leverage. In total, 48,458 ETH worth $143.37 million were shorted using just $10.5 million in USDC margin.

When combining these posts on X, it appears that the long-term outlook remains bullish. While there is a possibility of a short-term price correction, it seems unlikely given the current market structure.