Ethereum faces unprecedented short positioning as short interest spikes 500% since November 2024
The short interest in Ethereum has skyrocketed 500% since November 2024, which raised questions on the question of whether short imminent pressure could make up the performance widening with Bitcoin, despite the regulatory support .
During last week, a short interest in Ethereum increased 40% lightening your eyes, bringing the total increase to 500% astounding since November 2024, according to The Kobeissi letterA leading commentary on the world capital markets.
For years, Ethereum has been examined, especially around the fear that can be classified as security by dry. However, with the new regulatory environment under the Trump administration, experts believe that this is now unlikely. Actually, Eric Trump recently Posted on X This is “this is the ideal time to add ETH”, causing a brief increase in the price of Ethereum. Despite this change in regulatory, Ethereum (Ethn) is now faced with the highest short positioning he has ever seen.
Kobeissi’s letter analysts point to a particularly volatile period around February 2, when Ethereum dropped 37% in just 60 hours on the titles of the trade war. They also highlighted strong ETH entries in December 2024, despite information that the hedge funds increased their short positions. In just three weeks, ETH saw more than $ 2 billion in new funds, including a record weekly influx of $ 854 million.
In addition, they noted important peaks in the volume of trading Ethereum, in particular on January 21 (day of the inauguration) and during the accident of February 3. Despite the high entries, the price of Ethereum had trouble recovering, remaining about 45% below its ATH SET in November 2021, even after a week.
What know that hedge funds know?
With all of this taken into account, Kobeissi’s letters analysts wonder: “What can happen about hedge funds arriving?” They speculate on possible explanations, ranging from market manipulation and routine cryptography coverage strategies to a simple and plain of the future of Ethereum. “However, it is quite strange because the Trump administration and the new regulators favored ETH,” they wrote in The post x.
To conclude, Kobeissi’s letters analysts suggest that extreme positioning in the Ethereum market is likely to lead to larger price fluctuations, similar to that observed on February 3. In addition, they wonder if a short pressure could help close the performance gap between Bitcoin and Ethereum. To put it in perspective, since the beginning of 2024, Bitcoin surpassed Ethereum about 12 times. In addition, Ethereum’s market capitalization has decreased compared to Bitcoin, which is now six times larger than ETH. This is the greatest disparity between the two workers since 2020.
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