A large build-up of short positions in the Ethereum futures market has set the stage for a major price move, with one analyst predicting it could turn into one of the biggest short squeezes in ETH’s history. The price of Ethereum is currently hovering around the critical $2,700 mark
After falling to $2,100 during market volatility earlier this year, Ethereum has been steadily climbing back. It attempted to break through resistance at $2,700 several times but failed to hold above it. Now, with prices once again testing this zone, the analyst said a strong breakout above $2,742 could trigger a bigger rally in the coming days.
Source: TradingView
Chart patterns hint at a possible bullish move. Ethereum’s price action has created a setup where a daily close above the key resistance of $2,700 could lead to a sharp rise toward $3,700 in the weeks ahead.
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Ethereum’s performance compared to Bitcoin (the ETH/BTC ratio) is another important factor. According to the analyst, ETH recently dropped below a key support line in its pairing against Bitcoin, but if it can reclaim that level, it would be a very positive sign for both Ethereum and the wider altcoin market.
How This Altcoin Season May Be Different
The analyst also opened up about an altcoin season. While top tokens like Bitcoin, Ethereum, and XRP continue to dominate market discussions, Solana seems to be struggling to keep up with its 2021 performance.
The analyst, identified only as Tim, explained that unlike earlier bull markets, this cycle is being driven by growing institutional interest. In 2017, crypto’s total market cap peaked at under $1 trillion. By 2021, it hit $3 trillion. Now, as more big-money players move into the space, he believes the next wave of gains will come from tokens with real-world utility, not from thousands of random meme coins.
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This means that if an altcoin season does arrive, it may focus on cryptocurrencies that serve practical purposes for banks, payment networks, tokenization, and bridging traditional finance to blockchain. Rather than thousands of coins pumping together, it might be just 50 to 100 well-established, institution-friendly assets leading the rally.
With the market currently worth over $3.4 trillion, coins like XRP, Ethereum, and Stellar (XLM) are already among the top trending tokens. Some meme coins might still pop up now and then, but the expert warns that the days of random tokens surging without a clear purpose could be over.
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