Hedge funds have set a record for short positions on ether futures at the Chicago Mercantile Exchange (CME), with contracts reaching an all-time high of 6,349, reports BeinCrypto, citing a release by Zerohedge.
This bearish stance comes as ether struggles to hold above $4,000, despite over $2bn in recent ETF inflows, including a record $854m weekly influx, according to the report, referencing data from SpotOnChain.
Analysts attribute ether’s lacklustre price performance to the surge in shorts, signalling cautious near-term sentiment.
However, long-term optimism remains.
CryptoQuant data points to ether’s realised price upper band at $5,200 – on par with its 2021 bull run peak – indicating potential for upward movement.
Network activity also reflects strong interest, BeinCrypto finds, with Santiment reporting 130,000 new Ethereum addresses created daily in December, an eight-month high, while IntoTheBlock notes weekly transaction fees hit $67 million – the highest since April – driven by DeFi activity and market adjustments.
