Ethereum Under Siege: Record Shorts Clash With Unshakable Demand

Bears are piling onto Ethereum like never before—but the smart money's still buying. Here's why this showdown matters.

The short attack hits historic levels

Exchange data shows ETH shorts spiking to all-time highs as traders bet against the second-largest crypto. Classic Wall Street herd behavior—right before they get trampled.

Demand won't budge

Institutional inflows keep climbing while L2 networks process record transactions. Retail? Still stacking despite the FUD. Some things are more predictable than hedge fund hubris.

This isn't just another crypto volatility story. It's a stress test for Ethereum's fundamental value proposition—and so far, the network's passing with flying colors while shorts sweat their collateral ratios.

Short Squeeze Inevitable?

The analyst argued that a product purchased in massive volumes cannot simply collapse, calling these shorts the main reason ETH remains under pressure.

At the time of writing, ETH was trading around $4,300, far above the summer lows of $2,100 and roughly 20% higher than a month ago. With whales continuing to accumulate and shorts piling up, market observers are preparing for what may be Ethereum’s next big breakout.

A similar pattern could now play out, with short sellers forced to cover their positions, creating upward pressure. 

Also Read: Ethereum Faces Sell Pressure from Foundation, Yet Bulls Persist