Can Ethereum prepare for the huge short pressure?

The short positions on the ETH have increased by about 40 % in one week and 500 % since November, which has led to record levels.

“The hedge funds in Wall Street were less than Ethereum, and it is not close,” Kobeissi’s speech shouted on February 10.

The effects of this “intense location” were seen earlier this month when the encryption markets were shattered, and ETHEREUM was severely struck. The assets threw 37 % in 60 hours with Trump’s trade headlines appearing.

“It seemed to be the broken flash that was seen in the stocks in 2010, but without headlines,” he added.

Ethereum short pressure

Despite all negativity and the accumulation of short positions, Ethereum ETFS added $ 2 billion in new money in December with a weekly flow of $ 854 million. Kubisi indicated that the trading volume was strong, as it was the mutations after the opening day and the February accident.

Previous concerns about ETH SEC classification seem to be a decrease. The Trump administration appears to be supportive of ETH, and Eric Trump’s positive comment on ETH briefly affected prices last week.

However, Ethereum is still circulating by 46 % of its highest level ever in November 2021, which raises the question, “Why is the hedging boxes allocated to reduce ETHEREUM?”

What happens with ethereum?

The short positioning of the ethereum is now +40 % in one week and +500 % since November 2024.

Wall Street hedge boxes were not less than Ethereum, and they are not close.

What do the hedge boxes know?

(topic) pic.twitter.com/knsyohyyyt

Kobeissileter’s message February 9, 2025

There is a strong possibility for short pressure due to the short level of short location, the big gap between Bitcoin performance and the performance of ETHEREM, and BTC up to about 12 times more than ETH during the past year or so.

Short pressure occurs when the abbreviated asset begins significantly, such as ETH, to rise in the price, forcing the exposed sellers to cover their sites by re -purchasing the asset to reduce their losses.

Then the purchase pressure pushes this original up, forcing more sellers on the open coverage, creating a rapid upward vortex in the price. Looking at the 500 % increase in ETH short situations during the past three months, short pressure can be particularly dramatic.

With many short situations, this may create a great pressure in the purchase, which leads to a high price high and may close some of this gap with the performance of Bitcoin.

The effect may be especially important because institutional investors who occupy these large short situations use the leverage, which means that they may need to cover their positions quickly if the market moves against them, which may inflate the impact of pressure.

However, it should be noted that although short strikes can cause a significant increase in prices, they are often temporary, and the price may stabilize after the pressure is turned on.

The end of Altseason?

Returning to the current situation, ETH prices continue to collapse as the original has lost 17 % over the past two weeks.

ETH fell to the lowest level of the day of $ 2540 before a slight recovery of trade at $ 2630 at the time of writing this report. However, merchants and analysts discovered the similarities in the patterns of the plans, noting that February was a historical phrase for ETH.

ETHEREUM reflects the 2020 collapse structure.

Next station: 6 thousand dollars+ pic.twitter.com/meaxfmonij

– Merlijn Trader (Merlijntrader) February 8, 2025

Meanwhile, Altcoins takes the weight of the market decline today as BTC’s dominance increases again, approaching 62 %.