The recent rise in Ethereum to its high levels of all time successfully triggered a wave of bullish momentum that threatened to break the level of $ 5,000. However, this was not the case because the sellers were able to dominate again and postponed the price down. Most of this downward pressure seems to be motivated by great hedge funds, which continue to bet against the second cryptocurrency by market capitalization in record numbers.
Ethereum shorts reach record levels
As the Ethereum price has crossed $ 4,000, shorts have also accumulated, many expected the rally to run by vapor. Above all, these short numbers are motivated by great hedge funds, lowering the Ethereum price. This is not the first time, because the Hedge Funds have continued to remove the price of the ETH in order to minimize the losses on their side.
According to data from the net positions of the CME Ether Futures dashboard on the block website, these short numbers have in fact reached the levels that are not seen before. For the hedge funds alone, they almost doubled their short positions in August.
As the website shows, the total number of Ethereum shorts focused on hedge funds was $ 2.3 billion on August 5. However, this figure quickly increased to $ 4.19 billion at the time of this report. This suggests that the hedge funds always expect the Ethereum price to decompose from here.
Other positions on ETH
Unlike hedge funds, active managers remained rather optimistic in Ethereum. The data show that it has continued to be for a long time, going to more than $ 1.22 billion in positive at the time of this report. Although this is prominent, it does not become backlit positions, showing that there is more short-circuited.
Undo -reported positions remain positive at $ 77.5 million. Meanwhile, there is also the position of the “others”, which often includes retail and others, and which comes out in the negative at – $ 397.5 million, adding more fuel to the short circuit.
For the hedge funds, the more the Ethereum price increases, the more they lose money and the more the price goes, the more they earn money. However, with short positions at record levels, historical performances suggest that times like these are when a short pressure is likely, and the price could rally accordingly.
Dall.e star image, tradingView.com graphic
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