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.
📌 Key levels to watch: • $2,600 — important psychological area
• $2,560–$2,650 — key support zone
• $2,700+ — recovery zone
The big question now:
Will ETH follow the bearish positioning, or will trapped shorts fuel the next squeeze? 👀
#Ethereum #ETH #Crypto #Trading #MarketAnalysis $ETH $ETH
