Short interest in Ethereum has touched the sky by 500% since November 2024, questioning whether a weak short squeeze may shut down a widespread performance difference with bitcoins despite regulatory support.
In the last week, low interest in the ethrium has penetrated into the water from an eye, which has increased by 40%, causing the total increase since November 2024 to 500%. Coby letterAn industry leading comment on global capital markets.
Over the years, the atherium is subject to investigation, especially around the fear that it can be classified as protection by SEC. However, with the new regulatory environment under the Trump administration, experts believe it is no longer possible. In fact, Eric Trump recently Posted on X “This is a great time to add eth,” is the cause of a brief increase in the price of the atherium. Despite this change in the regulator tone, the Etharium (Ath) is now facing the smallest position that he has ever seen.
Analysts of Coby letter pointed to a particularly unstable period around 2 February, when the Etharium dropped up to 37% in just 60 hours in the trade warfare. They also highlight the strong flow in ETH during December 2024, despite the report that hedge funds were increasing their small positions. In just three weeks, Eth saw more than $ 2 billion in new funds, including a record-breaking weekly flow of $ 854 million.
Additionally, he referred to important spikes in the Etharium Trading Volume, especially during the accident on 21 January (opening day) and 3 February. Despite the high flow, the price of Ethereum is struggling to recover, about 45% below its ATH set in November 2021, even after a week passed.
What do hedge funds know?
With all this, Kobyi letter analysts surprised, “What do you know hedge funds?” They guess the possible explanations, from manipulation and regular crypto hedging strategies in the market to a simple and plain recession approach on the future of the atherium. “However, this is strange because Trump administration and new regulators have favor ETH,” he has written X post,
To wrapping it, Coby letter analysts suggest that the ethnium market is likely to have a more significant value in the extreme position, which is similar to the one who is seen on 3 February. In addition, they question whether a small squeeze can help shut down performance. Difference between bitcoin and atherium. To keep it in perspective, since the beginning of 2024, bitcoin has improved the atherium about 12 times. In addition, the market cap of the atherium has shrunk compared to bitcoin, which is now six times larger than Eth. This is the greatest inequality between two assets since 2020.
