Hedge funds are increasingly short selling Ethereum (ETH), leading to a 500% increase in short positions since November 2024. Short positions have risen by 40% in the past week alone. This is the highest level of short selling seen from Wall Street funds on Ethereum. The bearish sentiment towards ETH has been attributed to factors such as its current trading price being 45% below its all-time high, the outperformance of Bitcoin (BTC), and a potential bearish outlook on Ethereum. However, some analysts believe that this excessive bearish sentiment could set ETH up for a short squeeze, potentially pushing its price to $3,000 or even $4,000. Other reports suggest that ETH may have bottomed and could see a trend reversal to the upside, with target prices as high as $8,000. Concerns remain about the Ethereum Foundation regularly selling ETH. Currently, ETH is trading at $2,661.



Other News from Today