Ethereum ($ETH), a prominent crypto asset, is potentially seeing a noteworthy shorting trend. As per a well-known analyst “Maartunn,” taker sellers are expressing extreme Ethereum shorting, outcompeting taker purchasers by more than $350M daily. The analyst disclosed this market outlook on social media.
Ethereum Emerges as Major Crypto Asset Seeing Extreme Shorting
Maartunn mentioned that Ethereum seems to be the top major shorted crypto amid the present trading environment. In this respect, the taker sellers are outperforming the taker purchasers by above $350M per day. The analyst noted that $ETH is standing at the more shorted position in comparison with the other prominent crypto assets. Contrarily, conventional metrics like funding rates as well as open interest do not clearly highlight the spike in shorts. However, a deeper exploration of the trading history points toward the shorting trend.
The analyst pointed out that such a massive Ethereum shorting comes as a surprise as the asset has not seen this before. Ethereum has been operating as a “perma-bull” asset. In this respect, it typically records consistent long interest. Nonetheless, the present trend signifies a sheer deviation. In addition to this, Ethereum’s open interest has touched an ATH while it is underperforming in line with the wider crypto market.
Rising Ethereum Shorting Aligns with the Wider Sentiment in Crypto Market
According to Maartunn, the current underperformance of Ethereum, at the chief resistance levels such as $4,000, has solidified traders to move toward short positions. The respective strategy goes in line with the wider market sentiment. Moreover, throughout the bull market, Ethereum has lagged, with the $4,000 mark being obliterated every time. This clarifies that $ETH traders are shorting. This rising trend reportedly triggers queries about the price trajectory of Ethereum in the near future.
