Ethereum (ETH), the second-largest cryptocurrency by reported market cap, is facing unprecedented short selling from hedge funds. Notably, short positions in ETH have soared by 500% since November 2024, indicating heightened bearish sentiment toward the digital asset. Institutional Investors Losing Faith In Ethereum? According to a recent post on X by The Kobeissi Letter, Ethereum price is witnessing mounting challenges as short positioning in the cryptocurrency has ballooned in recent times. Notably, ETH short positions are up 40% in the last week, while they are up 500% in the last three months. It is worth highlighting that this is the highest level ever that Wall Street funds have been short Ethereum. Earlier this month, the crypto market got an indication of this bearish ETH positioning, as the digital asset crashed 37% in 60 hours amid Donald Trump’s proposed trade tariffs on Canada, China, and Mexico. Related Reading: Ethereum Poised For A Bullish Q1 2025? Here’s What Experts Say Interestingly, capital inflows to Ethereum exchange-traded funds (ETF) were significantly high in December 2024. In just 3 weeks, ETH ETFs attracted more than $2 billion in n ..
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