Main to remember
- Ethereum short positions have increased by 500% since November 2024, reaching fresh heights.
- While Bitcoin and other major cryptography assets have rebounded, Ethereum remains underperform.
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Ethereum faces a record in the open sales of hedge funds, with term contracts on the CME reaching a new peak of 11,341, the new Zerohedge shows.
Stock market bets have increased by more than 40% in a week and 500% since last November, as analyzed by the letter from Kobeissi. The aggressive short circuit increases red flags on the short-term prospects of Ethereum.
The analysis of the letter from Kobeissi notes that the story of Ethereum shows a clear correlation between the major short positions and the accidents of subsequent prices. On February 2, ETH experienced a major drop, falling up to 37% in 60 hours after the announcement of President Trump’s price.
“It looked almost like the flash accident observed in actions in 2010, but without titles,” said the analyst, adding that the sale has contributed to more than 1 dollars erased from the wider cryptography market in a few hours.
The wave of short positions occurs despite apparent support from the Trump administration, Eric Trump recently declaring “is the ideal time to add ETH”, which has temporarily increased prices.
From the latest Coingecko data, ETH has an $ 2,500, down 2% in the last 24 hours. The digital asset is currently negotiated at around 45% below its November 2021 record.
Bitcoin has left Ethereum in the dust since the beginning of 2024, amounting more than 100% while the ETH caused a gain of 3.5%. This disparity has increased the Bitcoin market capitalization six times the size of Ethereum – a domination not seen since 2020, according to Kobeissi’s letter.
Ethereum’s underperformance in the midst of a convalescence cryptography market raises concerns concerning factors stimulating negative feeling. Potential explanations include anxieties concerning Ethereum’s underlying technology, regulatory uncertainty and macroeconomic winds.
The short record position amplifies the price of price volatile. A sustained drop would validate the lowering prospects, but the size of the short position also increases the probability of a short pressure if the positive developments materialize.
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