Hedge Funds Push CME Ethereum Shorts to Record Levels
Hedge funds hit new record shorts on CME against Ethereum, pushing these positions to new all-time highs.
Despite a massive influx of funds into spot ETFs and generally bullish market sentiment, Ethereum has struggled to maintain momentum above the $4,000 mark.
Ethereum faces record short bets despite bullish ETF inflows
In the past three weeks, Ethereum ETF records continued inflowsraising more than $2 billion in new funding. The streak includes record weekly inflows of $854 million, the highest level since the product’s launch, according to SpotOnChain data. These developments have sparked optimism among some market participants.
However, this inflow of funds has not translated into significant prices Ethereum rally. on the contrary, Cryptocurrency price performance remains lacklustercausing investors to question.
Analysts attribute this to an increase in CME Group’s standard Ethereum net short position futures According to data from Zerohedge, the number of contracts reached a record 6,349 contracts. These short positions are often used to profit from falling prices and signal caution about the outlook Ethereum’s Despite broad market enthusiasm, there is still short-term potential.
Although hedge funds are short Ethereum, long-term market sentiment Still positive. Many traders expect Ethereum to potentially surpass its previous all-time highs as its market fundamentals remain strong.
In fact, blockchain data from CryptoQuant suggests that the actual price of Ethereum is higher band The price is $5,200, indicating the potential for the price to rise as supply and demand dynamics change.
“The current realized price cap of $5,200 is in line with levels seen during the peak of the 2021 bull market, indicating strong potential for further growth,” the company said.
Additionally, Ethereum’s network activity reflects continued interest. Analytics platform Santiment reported that more than 130,000 new Ethereum addresses were created every day in December, an eight-month high.
As a result, Ethereum’s weekly transaction fees surged to $67 million, the highest level since April, driven by strong momentum, IntoTheBlock data shows. Decentralized Finance Activity and market correction following the recent $100,000 market pullback.
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