Ethereum Short Position Surge 40% In A Week, ETH Price Crash Ahead?
The post Ethereum Short Position Surge 40% In A Week, ETH Price Crash Ahead? appeared on BitcoinEthereumNews.com.
Ethereum short positions have skyrocketed surging to more than 40% over the past week, the largest short position on the altcoin in history. This happens as the ETH price has seen strong selling pressure in recent weeks with short traders showing no signs of remorse. Analysts are weighing whether ETH could see further downfall or if a short squeeze is in the making. Ethereum Short Positions Paint A Scary Picture Over the past week, the Ethereum short positions have skyrocketed increasing by 40% and a staggering 500% since November 2024. Historically, this is the largest bearish bet on the world’s largest altcoin by Wall Street hedge funds as trader sentiment turns extremely negative. Source: ZeroHedge Earlier this month on February 2, a similar extreme positioning on Ethereum saw ETH price dropping 37% within three days on fears of the Trump trade war. Furthermore, the altcoin has seen robust trading volumes overall. Significant spikes were observed on January 21st, coinciding with Inauguration Day, and again during the February 3rd market crash. Despite the strong activity, ETH’s price has yet to recover from the gap lower, even a week after the downturn. Source: The Kobeissi Letter ETH Price Volatility Ahead? A Make-or-Break Situation This extreme positioning on Ethereum shows that it could experience strong ETH price volatility moving ahead. The ETH price has largely underperformed the broader crypto market in recent times while other altcoins managed to hit fresh highs. Crypto analyst Ali Martinez has identified $2,600 as a critical support level for (ETH). In a recent post, Martinez suggested that if this level holds, Ethereum could gather enough momentum for a significant rebound, potentially pushing the price toward $3,000 or even $4,000. Traders and investors are closely monitoring ETH’s performance at this key threshold. Source: Ali Charts As of press time,…
Filed under: News - @ February 10, 2025 5:22 am