Tag: highlighting

The post Ethereum bounces off $3K despite ETF bleed: Are ETH bulls stepping into a trap? appeared com. Key Takeaways Is Ethereum rebound flow-backed? Market positioning signals that Ethereum traders are leaning long, but ETF outflows and capitulating whales keep the risk of a bull trap alive. Does the $3k level mark a bottom? Technically, ETH’s V-shaped recoveries are absent, and the pattern mirrors mid-November’s breakdown, leaving $3k exposed. Is it still too early to call Ethereum’s [ETH] $3k level a confirmed bottom? On one hand, ETH has managed a 3. 5% bounce off $3k despite the broader market sitting in extreme fear. And yet, smart money continues to capitulate (realizing losses) while ETH ETFs keep bleeding capital. In this context, is Ethereum’s rebound a “bull trap”? Capital, leverage, and market share pivot toward Ethereum Ethereum’s rebound is being driven by a clear shift in market positioning. Notably, its resilience shows up as Bitcoin dominance [BTC. D] gets rejected at the 60% level. Meanwhile, ETH dominance [ETH. D] has pushed back above the 12% market-share mark with three consecutive green inflows. Essentially, traders are rotating into alts as BTC becomes the riskier trade. As a result, the ETH/BTC ratio has jumped roughly 3% in under 72 hours off the 0. 032 floor, reinforcing the idea of a classic strategic rotation at play. In Derivatives, positioning has been clearly tilted to one side, with the ETH/USDT perpetuals on Binance showing a 70%+ long skew across multiple timeframes. Simply put, Ethereum traders are leaning hard into the upside. Backing this, ETH’s Open Interest (OI) has climbed by $2 billion in under 72 hours, while BTC’s has jumped by $280 million. That’s 7× slower than ETH’s pace, highlighting the sharp rotation of leverage toward Ethereum. Taken together, ETH’s 3. 5% rebound is riding on solid rotational flows and a clear speculative liquidity.