Ethereum Could Rally to $3000 as Whales Bet Big on Long Positions

Highlights:

• Ethereum is trending lower in tandem with the broader market
• Analysts hint at a possible short squeeze for Ethereum

• Negative funding rates and whale buying hint at a possible Ethereum rally toward $3000

Ethereum (ETH) continues to push lower after losing the $2000 mark yesterday, February 10. When writing, Ethereum was trading at $1949.62, down by 2.85% in the day. At the same time, Ethereum trading volumes have dropped intraday. At press time, Ethereum trading volumes stood at $20.96 billion, down by 27.14%. 

The drop in trading volumes points to a possible end to panic selling that has dominated the market in recent weeks. There are multiple pointers that Ethereum is likely trading at the bottom, and that a rebound is possible. 

Whales Starting to Leverage Long Ethereum Again

One factor is that big players are returning to the leveraged long game. One standout whale has opened an $80 million Ethereum long, with 20x leverage. While this whale is currently over $1 million in the red, they have a pretty low liquidation price of $1200.

This shows that the whale is confident the liquidation price is unlikely to be hit in the short term. They are also convinced they could make a significant amount of money if the market rebounds. Such leveraged longs by big Ethereum holders usually hint at a market bottom, or a near one. 

Guess what? A whale has just opened a $115 million long position in ETH with a whopping 15x leverage!

The liquidation price is set at $1,318.
What do you think? pic.twitter.com/DaGczvwRkC

— Elja (@Eljaboom) February 11, 2026

Ethereum Funding Rates Have Turned Negative

Another hint that Ethereum has bottomed out is that funding rates for leveraged positions have turned negative. This usually means that short sellers are paying longs to maintain their positions. Historically, negative funding rates usually precede a short squeeze. In this case, it could be an early indicator of a surprise rally, one that could send Ethereum as high as $3000 in a short time.

Most negative $ETH funding rates since 10/10.

This is getting crazy. pic.twitter.com/BoH7PLVpnW

— Alex Choi ₿ (@Alexchoi_XBT) February 4, 2026

Such would trigger a liquidation of hundreds of millions of dollars worth of short positions. The fact that liquidity has thinned further also makes a short squeeze more plausible in the short term. That’s because even a slight uptick in the price could liquidate a sizeable number of shorts, and trigger a cascading push to the upside. 

Analysts Increasingly Bullish On Ethereum

The technical price dynamics of Ethereum are also reflected in analysts’ perspectives. Analysts tend to shape the social narrative and can push the price higher or lower. In the case of Ethereum, analysts are increasingly bullish.

One such analyst is Tom Lee, who has noted that Ethereum could rally as quickly as it has dropped. Across social media, many other market commentators argue that Ethereum is increasingly undervalued relative to its fundamentals.

📰 [News & Updates]
Tom Lee predicts Ethereum will form a perfect bottom at citing historical V shaped recoveries after steep declines

💡 Background:
At Consensus BitMine's Tom Lee stated Bitcoin's reversal depends on weaker gold performance expected this year He noted…

— Crazy Monkey (@CrazyMonkeyWeb3) February 11, 2026

Upcoming US Data Could Trigger A Short Squeeze

The key trigger for the short squeeze, which looks imminent, is US economic data. The US is set to release several important economic data points at 8:30 EST. The data will give an idea of the overall health of the US economy, and if it is good, could trigger strong capital flow into risk-on assets. Ethereum, one of the better-known cryptocurrencies, could benefit from such a shift in risk perception and see its price rise significantly in a short time.

Ethereum Could Rally to $3000 as Price Holds Strong Support

ETH has been bearish since it broke the $2069.0 support level. If bears sustain the momentum they have built so far, the $1,871.3 support level could come into focus.

On the other hand, if US economic data triggers a rebound, the key level to watch would be $2069.0, which is now resistance. A rally through this price level could push Ethereum to $2131.6, the short-term resistance level.