PANews reported on February 10 that, according to The Kobeissi Letter's monitoring, Ethereum (ETH) short positions have surged 500% since November 2024, with a 40% increase in the past week, reaching a new historical high, indicating an extremely bearish sentiment towards ETH among Wall Street institutions. On February 2, ETH plummeted 37% within 60 hours, causing the total crypto market capitalization to evaporate over $1 trillion, but inflows remain strong, with $2 billion in ETH inflows since December 2024, reaching a weekly high of $854 million. Although Bitcoin has repeatedly hit new highs, ETH is still about 45% lower than its 2021 all-time high, creating a significant gap. After the Trump administration took office, the SEC's regulatory risk on ETH's security status has decreased, and even Eric Trump has publicly shilled ETH, but the market sentiment remains gloomy. The current market discussion on the reasons for the massive short-selling of ETH by institutions may involve market manipulation, institutional hedging strategies, or bearish expectations on ETH's development prospects. As the short positions have accumulated to an extreme level, the market has begun to focus on whether ETH may experience a short squeeze, triggering a strong rebound.
