Blockchain News
News

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

Dario avatar
Shared by Dario • January 26, 2026

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.