According to CoinWorld news, on August 20, Ethereum recently surged to nearly $5,000, triggering a wave of upward momentum. However, this level could not be broken, as sellers once again took control, pushing the price back down. A significant portion of the downward pressure seems to come from large hedge funds, which continue to short sell the second-largest cryptocurrency at record levels. As the price of Ethereum rose above $4,000, short positions also increased, with many anticipating a weakening of upward momentum. The large short positions are dominated by major hedge funds, exacerbating the downward pressure on Ethereum. This is not the first time, as hedge funds have been attempting to suppress ETH prices to mitigate their own losses. According to The Block's 'CME Ether Futures Net Position' dashboard, these short data have reached an all-time high. For hedge funds alone, short positions nearly doubled in August. Data shows that on August 5, hedge fund-dominated Ethereum short positions amounted to $2.3 billion. However, in the latest report, this figure 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 scale is considerable, it is still lower than the short positions, indicating that shorts still dominate. Unreported positions maintain a long position of $77.5 million. Meanwhile, investors classified as 'others' (usually including retail investors, etc.) hold a short position of $397.5 million, adding more downward pressure to the market. For hedge funds, a rise in ETH prices means losses, while a decline signifies profits. However, with short positions at historic highs, historical trends indicate that such periods often lead to a short squeeze, potentially driving prices into a new round of increases.
