According to ChainCatcher's message, The Kobeissi Letter published an article on X stating that ZeroHedge's new chart shows that Ethereum is facing record-breaking short positions from hedge funds, with the number of CME futures contracts reaching a new high of 11,341. Ethereum's short positions have increased by 40% in a week and have grown by 500% since November 2024.
It points out that Ethereum's history shows a clear correlation between large short positions and subsequent price crashes. On February 2nd, ETH plummeted 37% within 60 hours after President Trump's announcement of tariff policies. This was almost like the 2010 stock market flash crash, but without any headline news. This sell-off caused the cryptocurrency market to evaporate over $1 trillion in a matter of hours.
Interestingly, even as the short exposure continues to increase in December 2024, Ethereum's inflows remain very high. In just 3 weeks, ETH has attracted over $2 billion in inflows, setting a record of over $854 million per week.
Since the beginning of 2024, Bitcoin's gains have been about 12 times that of Ethereum, and this gap has inflated Bitcoin's market cap to six times that of Ethereum, a dominance not seen since 2020.
