Ethereum continues to trade between $2,500 and $4,000, lagging behind other major cryptocurrencies.
Ethereum Trading Metrics
Some major altcoins like Bitcoin and Solana have reached record highs since the start of the year. However, the ETH price remains about 80% below its all-time high of $4,800 set in November 2021.
Hedge Funds' Position Analysis
Analysts point to significant shorting by hedge funds as a key factor behind ETH’s stagnation. According to The Kobeissi Letter, short positions on Ethereum have increased by 40% in one week and by 500% since November 2024, suppressing price actions.
Market and Future of Ethereum
Ethereum faces both structural and market weaknesses, making it an attractive target for short sellers. Ilya Paveliev from Arete Capital noted that retail investors are shifting to alternative networks like Solana and Base due to lower fees.
Despite the challenging market conditions, Ethereum retains potential for growth if it can address current weaknesses and attract new investments.
