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Hedge Funds are at the second highest short level ever.

Why? 3 potential reasons:

  • Hedge funds might short ETH if they expect a broader downturn in the cryptocurrency market.

  • Ethereum faces competition from other blockchain platforms, such as Solana

  • In some cases, hedge funds may short ETH with the intention of influencing market prices downward, creating panic selling, and then covering their shorts at a lower price.

PS Hedge Funds don't always get it right.

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Magicmurph

Perfect set up for the Trump pump

DesertRat

Those hedge funds know what they’re doing…..

Space Cowboy

This is also a result of a carry trade

Chewie

ETH is dying a slow death. Current pump perfect to short.

Amazing World

I may sell Eth and switch to Sol

3324

Rule of 100 i studied ETH years ago, it didn't take long to realise it was number 1 shitcoin

Ssanbo

Any carry trade on eth ? Ethena?

mtclvr

We don't talk about Solana unlocks and inflation here. Just other chains and tokens. With that said, solana is still better than anything else anyway

Tahoe Blue

How does this reconcile w James’ post yesterday re Update on Top Chain Dev Activity : “The number of repositories (repos) and subecosystems in cryptocurrency projects are often seen as signs of how much development is happening. ETH #1. SOL #2. MATIC #3 Would be helpful to see Eth’s trend over time to confirm it is dying a slow death (in this metric anyway).

Fabulous

I hope all this hedge funds that has been suppressing btc price get bruised recked that they never dare to short btc again.