Top professional traders and whale accounts holding net short positions on Ethereum indicate skepticism about the current rally and suggest it will fail.
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
Top professional traders and whale accounts are holding net short positions on Ethereum, indicating skepticism about the current rally's sustainability, with sources noting that the recent move was powered by a short squeeze that liquidated over $1 billion. Squeeze-driven rallies typically create fast price moves rather than lasting trends, and professional shorting suggests conviction that the move will reverse.
When large traders maintain net short positions despite price rallies, it signals they expect mean reversion and are willing to hold losses temporarily in anticipation of lower prices. This positioning dynamic typically creates a ceiling on how far rallies can extend before short covering exhausts and selling pressure returns.
"But the move was powered by a short squeeze that liquidated over $1 billion, CoinDesk reported, and squeezes create fast moves, not lasting trends."
"Top-PnL wallets sold a net $64 million over the past seven days, and smart traders and whale accounts on Hyperliquid perpetual futures both hold net short positions. Those are cohorts the market treats as genuinely informed traders, which gives their skepticism more weight."