Coinspeaker

Nov 26, 2025

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Hedge Funds’ Dollar Shorts Pose Risk for Ethereum’s Bullish Outlook

The US Dollar Index (DXY) shows strong inverse correlation with cryptocurrencies. A stronger dollar typically restrains risk assets like Bitcoin and Ethereum, while a weaker dollar supports rallies.

• Hedge funds currently hold large short positions against the dollar, risking a reversal that could pressure crypto markets.
• A dollar rebound threatens Ethereum's bullish narrative expected through 2026.
• DXY has moved above its 200-day moving average, indicating potential to break a multi-month downtrend.
• If the dollar strengthens, Bitcoin and Ethereum may face downward pressure as they have been sensitive to dollar movements this year.

Ethereum Price Analysis

• Ethereum trades near $2,900, maintaining an ascending trendline that serves as support.
• Major resistance lies around $4,000, with potential for a new all-time high (ATH) at $10,000 if cleared.
• If support fails, Ethereum could drop to the $2,300-$2,400 range.

Bitcoin Hyper ($HYPER) Update

• Bitcoin Hyper presale surpassed $28.5 million, indicating community support.
• HYPER aims to create a Layer-2 environment on Bitcoin, integrating DeFi, NFTs, and gaming.
• Utilizes Solana’s technology for efficient transactions with Bitcoin security.