The next few weeks will be a major decision time for Ethereum and the much-anticipated altseason.
The short positioning of Ethereum by Wall Street hedge funds has surged over 500% since November 2024.
As Gold price rallied to a new all-time high earlier on Monday during the Asian session, of about $2,898 per ounce, the hopes for fresh and new liquidity inflow to the altcoin industry, led by Ethereum , has increased. Last week’s initial crypto bearish sentiment significantly subsided over the past few days, with Bitcoin price forming a potential reversal pattern, which could trigger a fresh bullish sentiment.
With most of the altcoins still heavily undervalued in Bitcoin’s perspective, a parabolic rally of the 2025 crypto bull rally is likely to happen in the near future.
Ethereum Under Wall Street Control
According to a market research report from The Kobeissi Letter, the short positioning, catalyzed by Wall Street hedge funds, surged by more than 40% last week, based on the CFTC CME Ether cash leveraged net totals. Interestingly, the net short positioning in Ethereum has surged by more than 500% since November 2024
What is happening with Ethereum?
Short positioning in Ethereum is now up +40% in ONE WEEK and +500% since November 2024.
Never in history have Wall Street hedge funds been so short of Ethereum, and it’s not even close.
What do hedge funds know is coming?
(a thread) pic.twitter.com/knsyOhYyyt
— The Kobeissi Letter (@KobeissiLetter) February 9, 2025
What is happening with Ethereum?
Short positioning in Ethereum is now up +40% in ONE WEEK and +500% since November 2024.
Never in history have Wall Street hedge funds been so short of Ethereum, and it’s not even close.
What do hedge funds know is coming?
(a thread)
— The Kobeissi Letter (@KobeissiLetter)
The recent post by Eric Trump, VP of the Trump Organization, that now is a great time to add Ether to crypto portfolios has increased the trading activity of the altcoin industry.
What’s Next for ETH Price
In the weekly time frame, Ethereum price, against the US dollar, has been consolidating in a horizontal channel ranging between $2,200 and $4k since March 2024. The large-cap altcoin, with a fully diluted valuation of about $318 billion and a 24-hour average trading volume of around $20 billion, must hold above the support range between $2,200 and $2,622 to invalidate potential selloff to $1,500.
Nonetheless, the bullish sentiment for Ether is heavily bolstered by mainstream adoption by institutional investors. The increasing short positioning of Ether by Wall Street’s hedge funds will trigger the largest short squeeze in the history of altcoins.
In case Ether’s price consistently closes above the support/resistance level around $3,500 in the near term, all the short positions will run long and fuel a major bull rally.
$ETH GOING LOWER AS PLANNED https://t.co/kTJfHKggDk pic.twitter.com/aX9JdddzIC
— KNIGHT $INJ TO 100$ (@cryptoknight890) February 10, 2025
GOING LOWER AS PLANNED
— KNIGHT $INJ TO 100$ (@cryptoknight890)
Robust Fundamentals
The Ethereum network remains the dominant player in the decentralized financial () ecosystem, amid the emergence of highly competitive Layer One (L1) chains, led by Solana (SOL). According to market data provided by Defillama, the Ethereum network had a total value locked of about $56 billion and a stablecoins market cap of around $121 billion at the time of this writing.
Remarkably, Ether’s TVL is higher than the next four largest smart contract chains.
Meanwhile, the Ethereum network has significantly benefited from the mainstream adoption of digital assets by institutional investors. As Coinspeaker pointed out, the rate of cash inflow to US spot Ether ETFs has increased recently, thus increasing the cumulative total net inflow to $3.18 billion.