According to Mars Finance, on August 20, Ethereum recently surged to nearly $5,000, triggering a wave of bullish momentum. However, this level could not be broken, as sellers regained dominance and pushed the price back down. A significant portion of the downward pressure seems to come from large hedge funds, which continue to short this second-largest cryptocurrency at record levels. When the price of Ethereum stood above $4,000, short positions also increased, as many anticipated a weakening of upward momentum. A large number of short positions were dominated by large hedge funds, exacerbating Ethereum's downward pressure. This is not the first time, as hedge funds have been trying to suppress ETH prices to minimize their own losses. According to The Block's 'CME Ether Futures Net Position' dashboard, these short data have risen to an all-time high. For hedge funds alone, short positions nearly doubled in August. Data shows that on August 5, the Ethereum short position dominated by hedge funds was $2.3 billion. However, in the latest report, this number quickly grew to $4.19 billion, indicating that hedge funds are still betting on a decline in ETH prices. In contrast to hedge funds, asset management companies remain relatively optimistic about Ethereum. Data shows that they continue to hold over $1.22 billion in long positions. Although this is a considerable amount, it is still lower than the short positions, showing that shorts are still in control. The undisclosed positions maintain a long position of $77.5 million. Meanwhile, investors classified as 'others' (typically including retail investors) hold a short position of $397.5 million, bringing more downward pressure to the market. For hedge funds, a rise in ETH prices means losses, while a decline means profits. However, with short positions at historical highs, historical trends indicate that such periods often trigger short squeezes, leading to a new round of price increases.

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