Ethereum, the second largest encrypted currency depending on the maximum market, is under great pressure as the hedge funds collect their landslide stakes. Despite the broader encryption market showing signs of recovery, Ethereum has left backward. Since November 2024, the short centers against ETHEREUM have increased by 500 %, reaching record levels, according to data from the Kobeissi message. This aggressive abbreviation indicates increasing interests on ETHEREUM stability in the short term.
Short situations to break the record
This sudden rise in short situations was created on the market, with futures contracts at the peak of CME at 11341. In only one week, more than 40 % hippie stakes jumped. This strong wave of negative feelings has affected the ETHEREUM price, which is currently hovering about $ 2,500, a decrease of 2 % in the past 24 hours, and about 45 % less, moreover, raising fears of potential market fluctuations.
With such a short short site, Ethereum can be set for short dramatic pressure. This happens when the short sellers are forced to purchase the original to cover their positions, pushing prices to the highest. Given the current setting, sudden fluctuations can become like February 3 crash.
Bitcoin turns ethereum
Interestingly, while Bitcoin had a footnote in 2024, and gained more than 100 %, ETHEREUM witnessed a simple crowd of 3.5 %. This contrast has created a gap between the two, with the maximum Bitcoin market now six times of Ethereum – unprecedented since 2020. At the present time, Bitcoin dominates it as altcoins in general and not in a good position due to the delay in organizational policies.
Main sales and market reactions
The aggressive abbreviation coincided with a sharp decrease in prices on February 2, when Ethereum decreased by 37 % within 60 hours after commercial policy ads from the Trump administration. This incident, which is more than $ 1 trillion, was eliminated from the broader encryption market, which led to comparisons with the Flash of the Flash Stock Market 2010. Despite this, ETHEREUM witnessed strong capital flows. In December 2024 alone, ETH attracted more than two billion dollars, with a record weekly flow of $ 854 million. However, even support from characters like Eric Trump, who recently called “great time to add ETH”, did not reflect the declining direction.
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Possible repair?
The X Lola user refers to ETHEREUM high gas fees as a critical problem, which affects the performance of the Layer-2 network. SHIB, the largest original symbol on Ethereum, is suggested as a gas code to reduce costs. According to Lola, converting ETHEREUM role into a store more than value while using SHIB for transactions can help stabilize its price and improve its long -term view.
Currently, Ethereum faces a competition with Bitcoin. Heavy short situations are a sign of more fluctuations, unless there is any positive development, ETH may continue to struggle against both market morale and technical challenges.
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Common questions
Ethereum faces a short selling pressure, as hedge boxes are betting on low prices. ETH is trading near $ 2,500, and is behind the Bitcoin gathering.
ETH is 37 % inactive due to commercial policy attacks, high short sites, and slow adoption. Poor market morale and high gas fees to pressure.
Possible short pressure may increase growth, but continuous growth depends on market recovery and adoption and reducing transactions.
