Over the past 24 hours, Ethereum has jumped 18%, retaking the $200 level to finally settle around $206.16. While such a move would commonly spark a short squeeze, forcing traders to close their positions, the amount of ETH sold short has actually spiked to 241,655. This represents roughly $50 million in total short positions.
Ethereum shorts made headlines in recent days as investors are now accusing leveraged cryptocurrency trading platform BitMEX of manipulating the price of ETH after the exchange’s CEO sent out a message recommending a way for users to short the digital currency without ever having to own it. What this new trading vehicle means for the long-term health of Ethereum is yet to be determined.
If ETH can push through the $206 range, this would put the $225 technical level in play, which would ultimately put more pressure on bears to close their positions in fear of a significant squeeze.
More: ETH/USD Short Data
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.