As the price of $ETH surpassed $3,000, short positions increased, with expectations that this rally will end in a decline, like previous ones. Short positions have dominated the market recently, and the exponential growth has caused these positions to reach levels never before seen in the history of the digital asset. Although this may seem pessimistic at first glance, as it means that traders expect a price drop, it could end up being extremely optimistic for the altcoin.
In a post on X, market specialist Zerohedge revealed that short positions of $ETH reached new records, with a leveraged net total of -13291, surpassing the previous record of -12000 set in May. This increase in short positions of $ETH proves that there is still much disbelief in the current market rally, and many traders expect the price of Ethereum to fall again. However, looking at the historical performance when short positions hit record levels, this shows a trend that the rally may be sustained. For example, in May 2025, when it reached its previous peak of -12000, the price of Ethereum rose from under $1,800 to over $2,600 before the end of the month. This trend is also repeating now, as the price of Ethereum surpassed $3,000, and short positions of Ethereum reached a new peak.
Given that the price of Ethereum seems to be heading for a parabolic rally after surpassing $3,000, crypto analyst Luca on X outlined how he plans to position himself for the rise. Luca explains that, with the new week, the price of Ethereum is at a crucial point, as it approaches the Fibonacci Retracement level of 0.618, which has been a consolidation point for the altcoin in the past. Thus, the analyst explains that he intends to hold his positions in Ethereum. So far, Luca has revealed that he only reduced risk in Bitcoin positions, as the pioneering cryptocurrency reached all-time highs, but as the end of the cycle approaches, the focus remains on altcoins. He argues that the price of Ethereum, along with altcoins, will eventually surpass Bitcoin once dominance falls. When this dominance drop occurs, the analyst says it is the time to start reducing risk in altcoin positions. For now, the analyst expects Ethereum and altcoins to continue following Bitcoin, as dominance still remains high, above 64%, and BTC has not yet entered its distribution phase.
