ETH’s Short Position Soars! Hedge Funds or Just a Bad Hair Day?

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So, Ethereum – you remember that one, right? The second-largest cryptocurrency, kind of like the middle child of the crypto family? Well, it’s now the center of attention for all the hedge funds looking to make a quick buck. 🚀 And let me tell you, they’ve been short-selling it like it’s going out of style – up a whopping 500% since November! You think they’re betting on a resurgence? Pfft. They’re clearly not too optimistic here.

Is Wall Street Saying ‘See Ya’ to Ethereum?

According to some folks on X—who may or may not be wearing pajamas while tweeting—Ethereum has taken quite a hit with hedge funds piling on those short positions. In the last week, we’re talking about a 40% increase in shorts. Is anyone feeling confident here? I doubt it. You’d think they were betting against the start of the new iPhone line. How sad! 📉

ETH Short Positions

And get this: we’re at peak levels for Wall Street shorts on ETH. It’s startling! The market dropped 37% in just over two days. I mean, come on! Who knew Donald Trump’s trade tariffs would do more damage than a bad cologne? 💨

Now hold on, last December they were raking in more than $2 billion in ETH ETF inflows. It seemed like a party! But now, those hedge fund guys? Yeah, they seem a bit skittish about Ethereum’s price in the near future. You know that feeling when you walk past a haunted house? Yup, that’s their sentiment here.

Here’s the kicker—ETH is chilling at around 45% below its all-time high. Bitcoin? Oh, it’s having a great 2024, pulling in all the fun with a market cap that makes Ethereum look like it’s still in Little League. 🏆 Talk about sibling rivalry!

The Kobeissi Letter, a name that sounds more like a place you get a sandwich than crypto advice, believes this bearish sentiment could actually lead to a short squeeze. Big swings are coming! And I don’t just mean the swings at the playground, folks! Ok, I’ll stop rambling.

They are saying that since January, Bitcoin has skyrocketed while Ethereum limps along. Could we see a short squeeze close that gap? Oh boy, here we go!

Will ETH’s Short Squeeze Spark an Altseason?

If ETH does squeeze out of this bear market, we might see prices shoot up to $3,000, or even $4,000! But hey, they gotta keep that $2,600 support level intact first. It’s like holding onto a lifeboat in a sinking ship. 🚢

Some reports say ETH might have found its bottom. But wait! The Ethereum Foundation keeps dumping ETH like it’s stale bread. And as of now, it’s trading at $2,661. Just a slim bump up of 0.1%. Exciting, right? Not really! 🙄

Ethereum Chart

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2025-02-11 06:41