Ethereum shorts positions surged 40% in a week, what are institutions positioning for? Whale Holdings for 10 years: Can't see the growth potential of ETH

Global capital market review magazine "The Kobeissi Letter" posted on social platform X earlier yesterday (10th) that the short positions of ShortEthereum (ETH) in the market rose by 40% within a week and by 500% since November 2024, reaching an unprecedented scale. (Background: Analyst: New projects are better off on Ethereum L2, Solana performs better) (Background: Vitalik: I once thought about giving up on Ethereum! Retail investors in the crypto world think 'meme gambling' is the best, will I be happy?) The magazine also added that in fact, from various data and fundamentals, Ethereum should not be underestimated. These data include: Ethereum's high capital inflows, even when the short positions expanded in December 2024, the capital inflow of Ethereum was still huge within three weeks, and even set a record of $85.4 billion in a single week; Ethereum's volume has been strong, surging on the second day of the inauguration of President Trump and during the market crash in early February; The Trump administration and regulatory agencies have shown a very friendly attitude towards Ethereum. Further reading: Trump's son hinted at a 'major event for ETH' today, WLFI increased the position by 14,000 Ethereum. So, why are shorts still keen on ShortEthereum? Possible reasons given by "The Kobeissi Letter" include: Potential market manipulation; Common risk hedging; Pessimistic expectations for Ethereum itself. Well-known Ethereum OG close all positionsEthereum. It is also worth mentioning that in the current environment of fear, uncertainty and doubt about Ethereum, Qiao Wang, co-founder of the Web3 accelerator and the Alliance DAO community, recently stated in a podcast that not only many investors, but also many developers have turned to the public chain Solana. As someone who has held Ethereum for ten years as an OG, he has also closed all positions in this asset: It is easier to attract users on Solana, for developers familiar with EVM, switching to Solana is not easy, it requires learning a whole new set of tools, but even so, they still think it's worth it. I have actually held Ethereum since the Genesis Block, but I closed all positions last year. I held it for a whole 10 years, you can imagine, holding an asset for 10 years, but suddenly feeling that its potential for rise is almost exhausted. In addition, according to "Cointelegraph"'s late report yesterday (10th), Ethereum's daily transaction fees also fell below $1 million, the first time since September 2024 and only the second time since 2020, indicating that market demand for ETH is still low. NEW: Ethereum daily fees drop below $1M for the first time since September 2024, and only the second time since 2020. pic.twitter.com/bArP5VmNEx — Cointelegraph (@Cointelegraph) February 10, 2025 Related reports: ETH researcher: current Ethereumissuance curve is a trap, should adopt the 'croissant' model Polkadot founder Gavin Wood: Satoshi index in Polkadot is 149, far more decentralized than Ethereum and Solana Trump's son: It's time to add to Ethereum, but got exposed for WLFI transferring $300 million in assets to an exchange 'Pump and Dump'? <EthereumshortsPosition soars 40% in a week, what are institutions laying out? Holdings for ten years Whale: Can't see the potential for ETHrise> This article was first published on BlockTempo, the most influential blockchain news media in the Block area.