An unusually high number of traders have been Shorting Ethereum over the weekend, in anticipation that the ETH spot ETF launch on July 23 will trigger a sell-the-news frenzy.

“Sell-the-News” is a trading phenomenon that occurs when traders rapidly sell an asset in the wake of a positive event, in hopes of cashing in on the markets’ euphoric reaction.

Looking at the chart above we see that bears have mounted $704 million leverage SHORT contracts against ETH. Worryingly, this has now exceeded active ETH LONG futures contracts, which currently stands at $394 million at the time publication of July 21.

The downward pressure from ETH SHORT trades exceeding LONGs by over $300 million, partly explains why Ethereum price failed to advance above the $3,600 territory, while falling behind BTC over the weekend,

However, it remains to be seen if Joe Biden bowing out of the 2024 Presidential Campaigns race would spur spot market demand when the US markets open on Monday July 22.

Ethereum Price Forecast: Biden Announcement Could Strengthen $3,400 Resistance

As Ethereum hovers around the $3,450 mark, technical indicators suggest a cautious outlook for the week ahead.

The Bollinger Bands on the daily chart show a contracting range, indicating lower volatility and a potential consolidation phase. The upper band at $3,631.12 and the lower band at $2,852.28 outline critical resistance and support levels, respectively.