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 indicates 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: shorts have now reached new records. The chart showed the Ether leveraged net totals, which came out to -13291, beating the previous high set back in May at -12000.
This rise in Ethereum shorts proves there is still a lot of disbelief in the current market rally, with many traders expecting the Ethereum price to fall again. However, analyzing historical performance when shorts reach record levels indicates a trend that this time, the rally could be sustained.
For instance, back in May 2025, when it set its previous peak of -12000, the Ethereum price rallied from below $1,800 to more than $2,600 before the month concluded. This trend appears to be repeating, as the Ethereum price has crossed the $3,000 mark, coinciding with the new peak in Ether shorts.
How To Stay Positioned For ETH
Given that the Ethereum price seems to be headed into a potential parabolic rally after clearing $3,000, crypto analyst Luca on X has outlined strategies for positioning in anticipation of this surge. Luca notes that with the start of the new week, the Ethereum price is at a critical junction, approaching the 0.618 Fibonacci Retracement level, which has historically served as a point of consolidation for the altcoin.
The analyst plans to hold onto his Ethereum positions, revealing that he has only reduced his Bitcoin exposure, which has reached all-time highs. As the cycle nears its conclusion, the focus remains on altcoins.
Luca emphasizes that the Ethereum price, along with altcoins, is likely to outperform Bitcoin once its market dominance decreases. The analyst believes that this drop in dominance will signal the right time to start reducing altcoin positions. For now, he anticipates that Ethereum and altcoins will continue to follow Bitcoin’s lead, given that Bitcoin’s dominance remains above 64%, and it has yet to enter its distribution phase.
