Ethereum ($ETH) is facing a major positioning signal as large traders on Bitfinex are reportedly holding their highest short exposure in around 51 months.
ETH is currently around $2,641, down about 3.4%.
Heavy short positioning can increase downside pressure if sellers remain in control. But there is another side to this setup: if ETH holds key support and starts moving higher, crowded shorts could be forced to close, creating a short squeeze and adding buying pressure.
Recent ETH rallies have already triggered significant short liquidations, showing how quickly positioning can reverse.
đ Key levels to watch: âą $2,600 â important psychological area
âą $2,560â$2,650 â key support zone
âą $2,700+ â recovery zone
The big question now:
Will ETH follow the bearish positioning, or will trapped shorts fuel the next squeeze? đ
#Ethereum #ETH #Crypto #Trading #MarketAnalysis $ETH $ETH
