Ethereum’s (ETH) price is eyeing a significant rebound after losing nearly 9% of its value in the last seven days. As the altcoin builds momentum for the potential surge, shorts, who expect ETH’s price to keep decreasing, might face increased pressure.

In this analysis, BeInCrypto looks at the factors that could drive Ethereum’s value higher. It also highlights the possible impact on traders looking to profit from the cryptocurrency’s price movement.

Ethereum Targets Comeback, Shorts Under Pressure

In anticipation of “Uptober,” a term used to describe a bullish October, several analysts predicted that ETH could reach $3,000. But after a sorry start to the month, Ethereum’s price fell from $2,600 to $2,360, driving large-scale liquidation in long positions.

However, recent data shows that the table might be able to turn, and shorts might be at risk. One key metric forecasting this is Ethereum’s Coin Holding Time. This metric measures how long a coin has been held without being transacted or sold.

A decrease in holding time suggests that more holders are selling their assets, which typically signals bearish sentiment. Such activity often precedes downward price pressure, indicating that confidence in holding the coin may be waning.

Read more: How to Buy Ethereum (ETH) and Everything You Need to Know

However, in this case, the Coins Holding Time has surged by 58% during the same period as Ethereum’s recent price decline. This increase is a bullish indicator for ETH, as it suggests that long-term holders are accumulating or maintaining their positions despite the price drop. 

Such behavior could be crucial in helping the cryptocurrency recover and potentially erase some of its recent losses. If this continues, ETH’s price could jump toward $2,600. According to Coinglass, an increase to $2,644 could drive over $700 million in short liquidations 

If validated, this development could also lead to a short squeeze. For those unfamiliar, a short squeeze happens when a cryptocurrency’s price moves significantly higher, prompting traders who bet on a decrease to close their positions.

ETH Price Prediction: Bull Market Could Return

Despite ETH’s decline, bulls appear to be defending the price as the swing lows still formed an ascending line. As long as this stays the same, then it might not take a long period for ETH to rebound and resume its uptrend. 

However, it is important to note that significant buying pressure is needed to bring this prediction to life. From the daily chart below, Ethereum’s price might climb to $2,450 if the uptrend line remains intact.

Should buying pressure intensify, the altcoin’s value could also climb to $2,690. In that scenario, Ethereum would no longer bid goodbye to the bull market, which could help drive the price toward $3,202.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

On the other hand, a breakdown below the section trendline might invalidate this forecast. In that scenario, ETH’s price might drop below $2,300 to $2,295.

Telegram CEO Pavel Durov admitted that his platform has been disclosing user IPs, phone numbers, and addresses to law enforcement since 2018. Crypto security experts are dismayed by this revelation.

Nevertheless, Toncoin’s price has remained relatively stable.

A Longstanding Policy

Pavel Durov, founder and CEO of messaging app Telegram, claimed that his company has been disclosing user information since 2018. This revelation comes on the heels of Durov’s recent arrest for allegedly enabling criminal activities on the platform. Since his release, he first claimed that Telegram would crack down on illegal material, but he clarified those comments today.

“Whenever we received a properly formed legal request via relevant communication lines, we would verify it and disclose the IP addresses/phone numbers of dangerous criminals. This process had been in place long before last week,” Durov stated.

Read More: Crypto Telegram Groups To Join in 2024

This clarification, however, revealed a longstanding secret policy. Durov claimed that Telegram’s principles of freedom, privacy, and protection for activists remain unchanged.

However, some in the crypto space have disagreed. Deddy Lavid, CEO of Web3 security firm Cyvers, gave an exclusive interview with BeInCrypto to elucidate these general misgivings.

“Telegram’s disclosure of user IP addresses is a significant concern for the Web3 community, as it undermines the privacy and decentralization Web3 stands for. Many users frequently share wallet addresses over Telegram channels, and if Telegram links these wallet addresses to IPs, it could potentially expose a user’s identity,” Lavid told BeInCrypto.

Durov claimed that Telegram’s policy of cooperation with law enforcement has remained unchanged, and the authorities have only increased their requests in recent weeks. However, his tone has noticeably changed.

“[This policy] could allow centralized platforms to connect users’ personal information to their blockchain activity. To mitigate this, Web3 projects probably will consider shifting towards decentralized communication tools that prioritize data privacy and protect users from such vulnerabilities,” Lavid added.

In the hours since Durov’s announcement, Toncoin (TON) has dropped slightly in valuation, but nothing substantial has materialized yet. It is unclear if this sense of dismay from the crypto security sector will translate into a real bearish turn for TON as a whole.

Read More: What Are Telegram Mini Apps? A Guide for Crypto Beginners

Still, a price drop may happen in the future. TON’s price has already fluctuated, corresponding to Durov’s legal troubles, and this incident might prove no different.