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Ethereum’s price under pressure as hedge funds pile on shorts

Ethereum’s price under pressure as hedge funds pile on shorts
Hedge funds have engaged in record levels of short selling on Ethereum, with futures contracts on the CME reaching a new peak. Bearish bets have surged over 40% in a week and 500% since November, raising concerns about the cryptocurrency's near-term prospects. Analysis shows a correlation between large short positions and price crashes in Ethereum's history. Despite apparent support from the Trump administration, ETH is currently trading around $2,500, down 2% in the last 24 hours. Bitcoin has outperformed Ethereum, leading to a significant market cap disparity. The underperformance of Ethereum raises concerns about underlying technology, regulatory uncertainty, and macroeconomic headwinds. The record short position increases the potential for price volatility and the possibility of a short squeeze if positive developments occur.

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