The post Could Ethereum be Primed For a Massive Short Squeeze? appeared on BitcoinEthereumNews.com.

Short positions on ETH have increased dramatically by about 40% in one week and 500% since November, resulting in record levels. “Never in history have Wall Street hedge funds been so short of Ethereum, and it’s not even close,” exclaimed the Kobeissi Letter on Feb. 10. The effects of this “extreme positioning” were seen earlier this month when crypto markets crashed, hitting Ethereum hard. The asset dumped 37% in 60 hours as Trump’s trade war headlines emerged. “It felt almost like the flash crash seen in stocks in 2010, but with no headlines,” it added. Ethereum Short Squeeze Despite all the negativity and buildup of short positions, Ethereum ETFs added $2 billion in new funds in December while achieving a record weekly inflow of $854 million. Trading volume has been strong, with spikes after Inauguration Day and the February crash, Kobeissi noted. Previous concerns about SEC classifying ETH as a security appear to be diminishing. The Trump Administration seems supportive of ETH, and Eric Trump’s positive comment about ETH briefly affected prices last week. Nevertheless, Ethereum is still trading 46% down from its November 2021 all-time high, which begs the question, “Why are hedge funds so dedicated to shorting Ethereum?” What is happening with Ethereum? Short positioning in Ethereum is now up +40% in ONE WEEK and +500% since November 2024. Never in history have Wall Street hedge funds been so short of Ethereum, and it’s not even close. What do hedge funds know is coming? (a thread) pic.twitter.com/knsyOhYyyt — The Kobeissi Letter (@KobeissiLetter) February 9, 2025 There is a strong possibility of a short squeeze due to the extreme level of short positioning, the large gap between Bitcoin and Ethereum’s performance, and BTC being up approximately 12 times more than ETH over the past year or so. A short squeeze…

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Filed under: News - @ February 10, 2025 8:22 am