While strong spot buying continues on both #Coinbase and #Binance, net short positions on Binance Futures have exceeded the 1 million contracts mark. Simultaneously, long positions are unwinding, and leverage usage is decreasing — indicating a clear shift in risk appetite towards the short side.
Short Positions
As long as this divergence persists and spot liquidity remains stable, short positions on the futures market are likely to become unsustainable due to funding costs and rising liquidation risk.
Spot Positions
From a technical standpoint, Ethereum is approaching a critical short squeeze setup. If shorts begin to close in panic or under the influence of FOMO, we could see a rapid breakout in the 10%–30% range.
We are currently in a high-compression zone — right before a potential breakout.