Ethereum (ETH): Surge in Short Positions
Ethereum has seen a significant rise in short positions, with a 40% increase in just one week and a 500% surge since November 2024. This indicates growing bearish sentiment among traders, with hedge funds betting on a continued decline in Ethereum's price. Analysts warn that such a high concentration of short positions could lead to a short squeeze if the price moves against these positions.
Despite institutional interest, including $2 billion in Ethereum ETF inflows in December 2024, Ethereum's price has struggled to gain momentum, underperforming compared to Bitcoin. Factors contributing to this include competition from alternative networks and a decline in NFT trading volumes.