Unprecedented Short Selling: Ethereum’s Position Surges 40% Amid Market Turbulence

COINOTAG News reported on February 10th that the Kobeissi Letter, a prominent global financial commentary platform, has observed a remarkable surge in Ethereum’s short positions, rising by 40% over the past week and experiencing a staggering increase of 500% since November 2024. This unprecedented activity on Wall Street has established new records for short selling in Ethereum. The repercussions of this heightened short interest became evident when Ethereum experienced a sharp 37% decline within a 60-hour window, coinciding with escalating trade war tensions. This event bore resemblance to the historic flash crash of 2010, albeit lacking a specific news trigger. During this tumultuous period, the entire cryptocurrency market saw more than $1 trillion in value evaporate. Despite this surge in short positions, December 2024 brought significant capital inflows to Ethereum, totaling over $2 billion in just three weeks, including a weekly record of $854 million. Hedge funds, however, continue to apply pressure on ETH prices, aiming to restrain any potential upward momentum.