Ethereum short interest has increased by approximately 40% in just the past week, and by 500% since November 2024. To put this into perspective, these figures dwarfed previous records albeit bitcoin, making this the largest leveraged short position against in history. Also, find out a new Layer-2 as the best crypto to buy now.
Historically, these high levels of short interest have led to a squeeze. In early 2018, experienced a big short squeeze when its price suddenly rallied, bringing massive losses for shorters. Ethereum itself had seen big squeezes in the July 2020 DeFi summer, which led to crazy gains for ETH holders.
BREAKING 🚨: Ethereum
Speculators have built the largest $ETH short position in history pic.twitter.com/GVpKfi0Aw7
— Barchart (@Barchart) February 9, 2025
The Big Ethereum Short and Vitalik’s Revenge Pump – Is It Realistic?
Vitalik Buterin, Ethereum co-founder, is seen as the silent architect behind the movement. After the reported short interest in Ethereum, the phrase “Vitalik’s Revenge Pump” gained traction recently. Ethereum history swayed market sentiment. During the 2017 bull run, Vitalik’s tweets about scaling solutions led to the Ethereum pump, killing shorters.
The mechanics of a short squeeze are straightforward. If Ethereum’s price begins to pump, those betting against it would be compelled to buy back ETH to cover their positions. This buying pressure leads to a rapid increase in price, as was seen with Bitcoin in late 2020 when short positions worth over $1 billion were liquidated in a single day.
Given the current scale of short interest, a moderate catalyst could move the market to a pump. The possibility of a “revenge pump” is backed by history. Even Bitcoin saw this before, let alone Ethereum.
Ethereum’s roadmap includes the continued development of layer-2 solutions to increase transaction throughput by up to 17x. With this catalyst implemented, Ethereum could be on the verge of a major upward trajectory. Furthermore, Ethereum has recently increased its gas limit, too, which is bullish as it drops the gas price down.
This moment in Ethereum’s history reminds us of the dance between innovation, speculation, and market forces. Launched in 2015, Ethereum has seen its share of ups and downs, from its ICO at $0.43 per ETH to reaching all-time highs over $4,000 in 2021.
It remains to be seen whether Vitalik Buterin has a strategy to counter this massive short position. But history usually repeats itself.
SOLX is The Best Crypto to Buy During this Short Squeeze
Ethereum layer-2, like Arbitrum and Base, attracts many users because it scales what ETH can’t. Arbitrum and Base offer cheaper fees and faster transaction speeds, which is what Solaxy is aiming for on Solana.
Despite its impressive performance, Solana faces several challenges. One of its primary cons is its network outages. Solana experienced multiple high-profile network downtimes, which led to stalled transactions.
Solana layer-2 is the solution. Solaxy is designed to solve Solana’s scalability problems. With Solana and these problems, SOL needs a layer-2 solution. Solaxy’s SOLX could be the solution and the best crypto to buy right now.
Solaxy is the first Layer-2 solution on Solana. It has achieved a remarkable milestone by raising $19 million on ICO/presale, the first Layer-2 mover on Solana. SOLX tokens are currently priced at $0.00163 each, with an APY of 212%. Just sitting in their bags for a year guarantees users a 2.1X return in tokens at this current rate.
Big Key Opinion Leaders in the crypto space, including YouTuber ClayBro, who has nearly 20,000 followers on social media platforms, is endorsing SOLAXY.
The best crypto to buy now is SOLAXY, which is still in ICO/presale. Enjoy being an early buyer before it goes public. Those who buy during the presale usually get the tokens at the cheapest rates.
Bitcoin has it’s layer-2 like Lightning and Stacks. Layer-2 is the solution for scalability on every blockchain, Vitalik shows this by adding it to Ethereum’s new roadmap.
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