Ethereum traders are piling into short positions at unprecedented levels, signaling the potential for a powerful short squeeze that could jolt ETH prices upward.

According to recent data from the CFTC cash-settled Ethereum futures market, net leveraged short positions have reached an all-time high of 11,057 contracts. The chart shows a dramatic surge in bearish bets, eclipsing any previous levels seen in the past three years. Market watchers are now eyeing this extreme positioning as a possible setup for a reversal.

While the broader sentiment leans heavily negative, the sheer scale of the short exposure could leave many traders vulnerable. If the price begins to climb, forced liquidations could trigger a cascade of buybacks, sending ETH sharply higher in a short squeeze scenario.

However, Ethereum’s price action has yet to reflect any bullish momentum. ETH is currently trading at $2,440, down 2.15% over the past 24 hours and nearly 5% on the week. Its market cap stands at $294.5 billion, with 24-hour trading volume declining 15% to $16.8 billion — suggesting reduced participation and possible trader fatigue.

• Net leveraged short positions on ETH have hit a record high of 11,057 contracts.
• Market sentiment is overwhelmingly bearish, raising the odds of a short squeeze.
• ETH is struggling near $2,440, with trading volume down significantly.
• A sudden bullish trigger could ignite a wave of liquidations and upward price pressure.

With bearish bets stacked to the extreme, Ethereum appears to be approaching a critical juncture. If the market finds a bullish catalyst — whether from macro news, network developments, or broader crypto momentum — the reaction could be swift and violent. Until then, traders remain on edge, watching for any sign of a reversal in what could become one of the most volatile setups of the quarter.