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Ethereum Faces Critical Juncture: 20% Downside Risk Looms Amidst Trader Rotation and Short Squeeze Potential

Ethereum at Crossroads: 20% Downside Risk

Dario Cesaro avatar
Written by Dario Cesaro
Updated over 2 weeks ago

Ethereum's price is at a critical technical crossroads, with analysts debating whether a significant downturn or a sharp short squeeze is imminent. The cryptocurrency has activated a bearish head-and-shoulders pattern, projecting a potential 20% drop, while simultaneously seeing capital rotation from Bitcoin and heavily crowded short positions that could fuel a rapid upward move.

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