Ethereum Sees Record Short Positions Amid Price Volatility

Ethereum Price Update

Ethereum's price has dropped below $4,300 after reaching multi-year highs.
Bulls are struggling to maintain support, raising concerns of a deeper correction despite strong bullish fundamentals.
Institutional adoption is increasing, with major firms investing in Ethereum through ETFs and treasury strategies.
Open Interest is rising sharply, indicating heightened speculation and leveraged positions in derivatives markets.
Critical days ahead for ETH; maintaining support could lead to attempts to challenge the $4,500–$4,800 resistance zone.

Short Position Pressure

Record short positions are building, with net leveraged shorts at 18,438 contracts—an all-time high.
This positioning may create conditions for a short squeeze if ETH rallies from current levels.
Historically, such dynamics can lead to rapid upside movements, benefiting bulls.

Technical Analysis

ETH is currently trading around $4,284, testing key support between $4,200 and $4,250, aligned with the 100-day moving average.
A breakdown below $4,200 could lead to further declines toward $4,000 or $3,900.
If buyers defend this support, ETH might rally towards resistance levels near $4,500–$4,600.

Long-term fundamentals remain strong, supported by declining exchange supply and institutional accumulation.