Ethereum Shorts Reach Record Levels, How To Stay Positioned For A Breakout

Source Newsbtc

As the Ethereum price has broken out above $3,000, the shorts have piled on with expectations that this rally will end up like the others before it: in a crash. Not only have the shorts been dominating the market recently, but the exponential growth has seen the short positions rise to levels never before seen in the history of the digital asset. While this might look bearish at a glance as it means traders expect the price to decline, it could actually end up being ultra-bullish for the altcoin.

Ethereum Leverage Positions Reach Record Short Levels

In a post on X, market expert Zerohedge revealed an interesting development for Ethereum, and that is the fact that Ethereum shorts have now reached new records. The chart showed the Ether leveraged net totals, and it came out to a -13291, beating the previous high that was set back in May at -12000.

This rise in Ethereum shorts proves that there is still a lot of disbelief in the current market rally, and many traders expect the Ethereum price to fall again. However, looking at the historical performance when it comes to shorts reaching record levels, it shows a trend that this could mean the rally could be sustained.

Ethereum shorts

For example, back in May 2025, when it set its previous peak of -12000, the Ethereum price had rallied from below $1,800 to above $2,600 before the month was over. This trend is also playing out now as the Ethereum price has crossed $3,000, as the Ether shorts have reached a new peak.

How To Stay Positioned For ETH

Given that the Ethereum price seems to be headed into what might be a parabolic rally after clearing $3,000, crypto analyst Luca on X has outlined how they intend to position for the surge. Luca explains that with the new week, the Ethereum price is at a key point. This is because it is approaching the 0.618 Fibonacci Retracement level, and this level is important because it has been a point of consolidation for the altcoin in the past.

As such, the analyst explains that he intends to keep holding his positions on Ethereum. So far, Luca revealed that he has only de-risked Bitcoin positions as the pioneer cryptocurrency has hit all-time highs, but as the end of the cycle draws closer, the focus remains on altcoins.

Ethereum price

He maintains that the Ethereum price, alongside altcoins, will end up outperforming Bitcoin once the dominance drops. When this dominance drop happens, the analyst says that is when to begin de-risking altcoin positions. For now, though, the analyst expects Ethereum and altcoins to keep trailing Bitcoin as the dominance still remains high above 64% and BTC is yet to enter its distribution phase.

Ethereum price chart from TradingView.com
Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: XAU/USD climbs above $3,350 as Trump rekindles trade tensionsThe Gold price (XAU/USD) extends its upside to around $3,365 during the early Asian session on Monday. The precious metal edges higher as traders rushed toward the traditional safe-haven assets after US President Donald Trump widened the global trade war with a fresh wave of tariffs.
Author  FXStreet
Yesterday 02: 33
The Gold price (XAU/USD) extends its upside to around $3,365 during the early Asian session on Monday. The precious metal edges higher as traders rushed toward the traditional safe-haven assets after US President Donald Trump widened the global trade war with a fresh wave of tariffs.
placeholder
Ripple’s $21 Trillion Dream: What Capturing 20% Of SWIFT Volume Means For XRPRipple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
Author  NewsBTC
Yesterday 02: 43
Ripple Labs, a crypto payments company, continues to set its ambitions and those of XRP higher than ever as it edges closer to disrupting the global financial messaging giant SWIFT. After Ripple CEO
placeholder
Bitcoin Price Retreats After Hitting ATH — Bulls Pause for BreathBitcoin price started a fresh increase above the $118,500 zone. BTC traded to a new high above $120,000 and recently started a downside correction. Bitcoin started a fresh increase above the $120,000
Author  NewsBTC
11 hours ago
Bitcoin price started a fresh increase above the $118,500 zone. BTC traded to a new high above $120,000 and recently started a downside correction. Bitcoin started a fresh increase above the $120,000
placeholder
Australian Dollar inches higher as China’s GDP rises in second quarterThe Australian Dollar (AUD) gains ground against the US Dollar (USD) on Tuesday, following China’s economic data.
Author  FXStreet
11 hours ago
The Australian Dollar (AUD) gains ground against the US Dollar (USD) on Tuesday, following China’s economic data.
placeholder
Bitcoin Hits $123,000—But Inflows Are Just A Fraction Of 2024’s PeakBitcoin has set a new all-time high (ATH) around $123,000, but cryptocurrency market inflows are still far from the peak observed back in 2024. Crypto Capital Inflows Are Currently Sitting At $51
Author  NewsBTC
11 hours ago
Bitcoin has set a new all-time high (ATH) around $123,000, but cryptocurrency market inflows are still far from the peak observed back in 2024. Crypto Capital Inflows Are Currently Sitting At $51
goTop
quote