Speculators have built the largest leveraged short position in Ethereum (ETH) history, raising concerns about the cryptocurrency’s near-term outlook.

According to the latest CME CFTC data shared on August 18, net leveraged short positions on Ether have surged to a record -18,438 contracts.

The data highlighted a sharp rise in bearish bets throughout 2024 and into 2025, as institutional traders appear to be positioning against Ethereum more aggressively than ever before.

Notably, the surge in shorts points to growing skepticism about ETH’s ability to sustain its valuation. While such extreme positioning often signals deep bearish sentiment, it can also set the stage for a potential short squeeze if Ethereum manages to stabilize or rally unexpectedly.

Ethereum price analysis

This record shorting comes as Ethereum has been on an upward trajectory, largely fueled by institutional demand through massive inflows into spot exchange-traded funds led by firms such as BlackRock. This momentum has pushed Ethereum toward the $5,000 resistance level.

At press time, Ethereum was trading at $4,280, down over 5% in the past 24 hours and about 0.1% lower on the week.

Despite the pullback, Ethereum remains well above its 50-day simple moving average (SMA) of $3,494.65 and 200-day SMA of $2,621.11, confirming a strong bullish trend with long-term momentum intact. The wide gap between the averages signals sustained upside strength.

However, Ethereum’s 14-day RSI of 66.97 shows it is nearing overbought territory, suggesting short-term consolidation or pullbacks are possible even as the broader trend remains positive.

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