According to the liquidation tables, there is currently a short position of $345 million in the market. This means that if the price rises by just 3%, these positions will be liquidated. This shows that investors expect a serious price drop in the near term. On the other hand, the $237 million long position in the market seems less risky. A long position is a bet that the price of the asset will increase. If the price falls, those who open a long position will make a loss, but in case of an upward movement, they will make a profit. Liquidation charts show that these positions will be liquidated if the price drops by 3%. This reveals that investors are not completely pessimistic despite the decline expectation.

Grayscale Investments’ withdrawal of its Ethereum futures ETF application has led to uncertainty in the market. This situation may have increased the risk perception of investors and caused them to turn to short positions. Additionally, questions about whether Ethereum can be classified as a security also negatively affect the market. The fate of spot Ether ETF applications in late May also remains unclear. These uncertainties may cause investors to shy away from long-term investments and focus on short-term price volatility.

Contrary to the optimism experienced earlier in the year, analysts are increasingly skeptical. As the next deadline on May 23 approaches, they think the odds of the US Securities and Exchange Commission (SEC) approving the spot Ether ETF are decreasing. The sentiment within the crypto community is similar. According to New York-based crypto prediction platform Polymarket, 92% of respondents predict that spot Ether ETFs will not be approved.

Although the general trend is downward, there are different interpretations in the market. In a statement made on May 8, the research firm Glassnode claimed that the inadequate performance of Ether compared to Bitcoin in this cycle was due to investors being more hesitant.

However, some crypto commentators remain optimistic. Crypto trader nicknamed Ash Crypto said in a statement to his followers on May 6 that, based on historical data, an increase could occur in the 3rd quarter of 2024.

Crypto commentator nicknamed TheCryptoPalace stated in his statement on May 1 that the Ethereum price is currently testing an important support level and may remain horizontal around this level in the coming period.

In summary, Ethereum price has been trending downwards recently. Developments such as investors turning to short positions and Grayscale withdrawing its ETF application are the factors that accelerate this decline.