"Large Hedge Fund Short Positions Trigger Ethereum Decline"

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Summary

The increase in short positions by large hedge funds has reportedly triggered a decline in Ethereum (ETH).
Asset management firms have started buying Ethereum, but short positions still remain dominant.
Based on past cases, it is also reported that if short positions reach a record high, there is a possibility of a price surge due to a short squeeze.

It has been analyzed that large hedge funds' short (sell) positions have triggered the decline of Ethereum (ETH).

On the 20th (local time), Bitcoinist stated, "The decline in Ethereum is being driven by large hedge funds," and added, "Short positions (sell) have reached historic highs." As of the 5th, hedge funds' Ethereum short positions amounted to only $2.3 billion. However, recent data shows that short positions have surged to $4.19 billion.

Buying activity by asset management firms was not enough to change the trend. The outlet explained, "Asset managers are still buying Ethereum. Long (buy) positions have increased by $1.22 billion," but also said, "Short positions still dominate the market." In addition, it was noted that individual investors have also increased their short positions.

However, the possibility of a short squeeze has also been raised. The report stated, "Historically, when short positions reach record highs, a short squeeze often occurs," and, "There's a high probability that the price of Ethereum could spike."

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