The change in customs duty rates initiated by US President Donald Trump has shaken cryptocurrencies to a great extent. While Bitcoin (BTC) and altcoins experienced significant declines, the price of Ethereum (ETH) fell by approximately 37 percent in a short period of three days following Trump's tax statements. While the Ethereum price is still in a downtrend, ETH short positions have reached a new all-time high, increasing by 500% since last November. According to The Kobeissi Letter, short positions in Ethereum have reached a new all-time high, increasing by 40% in the past week and by 500% since last November. Wall Street Giants Expect Further Drops in Ethereum! This aggressive increase in short positions signals growing concerns about Ethereum’s near-term stability, with analysts noting that this increase is occurring because the ETH price has been experiencing strong selling pressure in recent weeks. Analysts say investors' Ethereum sentiment is extremely negative, and that short positions are caused by hedge funds. At this point, it was stated that hedge funds were betting heavily on the price of Ethereum to fall further and were aggressively opening short positions, while this increase could increase volatility in the price of ETH. Analysts also noted that historically this was the biggest bearish bet by Wall Street hedge funds on the world's largest altcoin. What is the Critical Level for ETH? As uncertainty about the Ethereum price grows, crypto analyst Ali Martinez said that $2,600 is a critical support level for ETH. The analyst argued that if the $2,600 level holds, Ethereum could gather enough momentum for a significant recovery, potentially sending the price to $3,000 or even $4,000. Another analyst said that such excessive shorting is a sign that Ethereum could be experiencing a major short squeeze. This would occur when short traders would be forced to close their positions and buy back ETH, sending prices sharply higher. With Ethereum currently struggling to cope with a strong downtrend, aggressive short positions are seen as a sign of further volatility. At this point, market analysts are generally warning that unless there is a positive development for Ethereum, ETH could face both market sentiment and technical challenges. *This is not investment advice. Continue Reading: Wall Street Giants Have Lost Hope on This Altcoin! Short Positions Broke a Record!
