Data: Ethereum Short Positions Surge 40% in One Week, Up 500% Since November

On February 10th, the global market macro commentary magazine Kobeissi Letter shared that within a week, the short position in Ethereum has increased by 40%, surging by 500% since November 2024. The short position of Wall Street on Ethereum is unprecedented, even surpassing any previous period. The impact of this extreme short position has already been observed. On February 2nd, Ethereum plummeted by 37% in 60 hours, coinciding with news related to the trade war. This plunge was almost similar to the "flash crash" in the stock market in 2010, but at that time, there was no clear news trigger. The entire crypto market evaporated more than $1 trillion in just a few hours. Although the short positions increased rapidly in December 2024, Ethereum still attracted a large amount of fund inflows. In just 3 weeks, ETH witnessed inflows of more than $2 billion, with a record-breaking weekly inflow of $854 million. However, hedge funds are still heavily shorting, trying to suppress the rise of ETH and limit the breakout rally.