🚨 Warning: The number of shorts in Ethereum has reached a record high.

This could trigger a large-scale short squeeze.

Currently, short positions against Ethereum in the market have reached unprecedented levels. Typically, this situation reflects a significant amount of pessimism in the market, where many traders expect prices to drop, thus choosing to borrow and sell in hopes of buying back for profit when prices fall.

▪️ The Basic Mechanism of Short Squeeze

1. Accumulation of Short Positions:

In scenarios of extreme bearish market sentiment, many traders rush to establish short positions. An increase in such positions reflects widespread market belief that prices will decline, but it also harbors potential risks.

It's crucial to monitor the situation closely, as a large number of shorts in Ethereum could lead to a volatile market. Traders need to stay alert for a potential short squeeze.