Ethereum Eyes $2,000 as Binance Supply Drops: Short Squeeze Incoming?
Ethereum is trading above $1,800, having gained approximately 15.3% over the past two weeks, indicating a recovery phase despite investor concerns. A decline in Ethereum's Exchange Supply Ratio on Binance suggests reduced selling pressure, as more ETH is being withdrawn for holding or use in decentralized finance (DeFi). This trend mirrors a previous instance in April when a similar decline preceded a price rally from below $1,700 to around $1,950. Current market conditions show a significant cluster of short positions between $1,900 and $2,000, which could lead to a short squeeze if ETH's price rises into that range. The combination of falling exchange balances and increasing short interest creates favorable conditions for upward price movement, making the $1,900 to $2,000 range a critical focus for potential liquidity hunts.
